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119-s-2411119th CongressWALLET

Scale-Up Manufacturing Investment Company Act of 2025

Sponsored By: Senator Booker, Cory A. [D-NJ]

Introduced

Summary

This bill would create a federal program to deliver targeted _scale-up financing for small and emerging manufacturers_. It pairs public leverage with private investment to help technology-intensive firms bridge the funding gap between prototype and commercial production.

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  • Small and emerging manufacturers would gain access to debt and equity from licensed participating funds for qualifying manufacturing projects, with a rule that leverage may cover no more than 50% of any project.
  • Participating investment funds would face licensing and reporting rules, must meet manager experience and fundraising criteria, and could receive up to $1 of federal leverage for each $1 of private capital with a per-fund leverage cap of $500 million.
  • Banks could invest in these funds up to 5% of their capital and surplus, and the Administration may buy or guarantee fund debentures and preferred securities, with guarantees backed by the full faith and credit of the United States.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Federal leverage and guarantee limits

If enacted, the Administrator could give a licensed fund up to $1 of federal leverage for each $1 of private capital raised. A fund's outstanding leverage in one year would be capped at $500 million and all funds together at $1 billion. At least 70% of leverage must be debentures and up to 30% can be preferred securities. The government could buy or guarantee those securities, and the Administrator would charge a leverage fee of 3% to 5.5%. The bill would also tell OMB to count program fees and interest when scoring subsidy costs.

New financing program for small manufacturers

If enacted, the bill would create a new program to help small and emerging manufacturers get investment. The Administration would run the program and define who and what projects qualify. Licensed funds that get federal leverage would have to use it for qualifying manufacturers. The Administration would require extra outreach to firms owned by disadvantaged people, women, veterans, and people with disabilities.

Bank incentives and legal treatment

If enacted, bank exams under the Community Reinvestment Act would count investments in participating funds as a factor. The Bank Holding Company Act would also be updated to explicitly include investments in participating funds. These changes could make banks more likely to invest in the funds.

Rules and oversight for participating funds

If enacted, participating funds must have at least $250 million in private capital. No single investment may exceed 10% of a fund's total capital. Banks may invest but no bank may invest more than 5% of its capital and surplus. For any project, no more than 50% of the money a fund provides may be federal leverage. Funds with outstanding leverage would face limits on third‑party debt. Funds must send valuations and audited financials at least yearly and report twice a year. The Administrator must give a license decision in 180 days and can remove managers or seek forfeiture in court for violations.

Advisory council and rulemaking power

If enacted, the Administrator could set up a five‑member advisory council to advise on the program and give an annual briefing. The Administrator would also be able to issue regulations needed to run the program.

Sponsors & CoSponsors

Sponsor

Booker, Cory A. [D-NJ]

NJ • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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