S.Amdt. 961

1. Adds SEC. 1203. REVOLVING LOAN FUNDS FOR SMALL MANUFACTURERS on page 24, between lines 19 and 20

   Adds a sectionPrinted page

   Inserted: SEC. 1203. REVOLVING LOAN FUNDS FOR SMALL MANUFACTURERS.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Center.--The term "Center" means a Regional Center for the Transfer of Manufacturing Technology described in section 25 of the National Institute of Standards and Technology Act (15 U.S.C. 278k).

   Inserted: (2) Manufacturing extension partnership program.--The term "Manufacturing Extension Partnership program" means the program under sections 25 and 26 of the National Institute of Standards and Technology Act (15 U.S.C. 278k and 278l).

   Inserted: (3) Revolving loan fund.--The term "revolving loan fund" means a revolving loan fund described in subsection (d).

   Inserted: (4) Secretary.--The term "Secretary" means the Secretary of Commerce.

   Inserted: (5) Small manufacturer.--The term "small manufacturer" means a manufacturer with less than $50,000,000 in annual sales.

   Inserted: (b) Grants Authorized.--

   Inserted: (1) In general.--The Secretary is authorized to award grants to States to establish revolving loan funds.

   Inserted: (2) Maximum amount.--The Secretary may not award a grant under this section in an amount that exceeds $10,000,000.

   Inserted: (3) Multiple grant awards.--A State may not receive more than 1 grant under this section in any fiscal year.

   Inserted: (c) Criteria for the Awarding of Grants.--

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   Inserted: (1) Matching funds.--The Secretary may not make a grant to a State under this section unless the State agrees to provide contributions in an amount equal to not less than 25 percent of the Federal funds provided under the grant.

   Inserted: (2) Administrative costs.--A State receiving a grant under this section may only use such amount of the grant for the costs of administering the revolving loan fund as the Secretary shall provide in regulations.

   Inserted: (3) Preference.--In awarding grants each year, the Secretary shall give preference to States that have not previously been awarded a grant under this section.

   Inserted: (4) Application.--

   Inserted: (A) In general.--Each State seeking a grant under this section shall submit to the Secretary an application therefor in such form and in such manner as the Secretary considers appropriate.

   Inserted: (B) Content.--Each application submitted under subparagraph (A) shall contain the following:

   Inserted: (i) Evidence that the applicant can establish and administer a revolving loan fund.

   Inserted: (ii) The applicant's need for a grant under this section.

   Inserted: (iii) The impact that receipt of a grant under this section would have on the applicant.

   Inserted: (d) Revolving Loan Funds.--

   Inserted: (1) In general.--A State receiving a grant under this section shall establish, maintain, and administer a revolving loan fund in accordance with this subsection.

   Inserted: (2) Deposits.--A revolving loan fund shall consist of the following:

   Inserted: (A) Amounts from grants awarded under this section.

   Inserted: (B) All amounts held or received by the State incident to the provision of loans described in subsection (e), including all collections of principal and interest.

   Inserted: (3) Expenditures.--Amounts in the revolving loan fund shall be available for the provision and administration of loans in accordance with subsection (e).

   Inserted: (4) Administration.--A State may enter into an agreement with a Center to administer a revolving loan fund.

   Inserted: (e) Loans.--

   Inserted: (1) In general.--A State receiving a grant under this section shall use the amount in the revolving loan fund to make the following loans:

   Inserted: (A) Stage-1 loans.--A stage-1 loan means a loan made to a small manufacturer in an amount not to exceed $50,000, for new product development to conduct the following:

   Inserted: (i) Patent research.

   Inserted: (ii) Market research.

   Inserted: (iii) Technical feasibility testing.

   Inserted: (iv) Competitive analysis.

   Inserted: (B) Stage-2 loans.--A stage-2 loan means a loan made to a small manufacturer in an amount not to exceed $100,000 to develop a prototype of and test a new product.

   Inserted: (2) Loan terms and conditions.--The following shall apply with respect to loans provided under paragraph (1):

   Inserted: (A) Duration.--Except as provided in subparagraph (B), loans shall be for a period not to exceed 10 years.

   Inserted: (B) Prepayment.--A recipient of a loan may prepay such loan at any time without penalty.

   Inserted: (C) Interest rate.--Loans shall bear interest at a rate of 3.5 percent annually.

   Inserted: (D) Accrual of interest.--Loans shall accrue interest during the entire duration of the loan.

   Inserted: (E) Payment of interest.--A State may not require a recipient of a loan to make interest payments on such loan during the first 3 years of such loan.

   Inserted: (F) Collateral.--No collateral or personal guaranty shall be required for receipt of a loan.

   Inserted: (G) Secured interest in intellectual property.--Each loan shall be secured by an interest in any intellectual property developed by the recipient of such loan through the use of amounts from such loan.

   Inserted: (H) Development of business plans and budgets.--Each recipient of a loan shall develop, in cooperation with a Center, a business plan and a budget for the use of loan amounts.

   Inserted: (I) Preference for loan applicants that participate in the manufacturing extension partnership program.--In selecting small manufacturers to receive a loan, a recipient of a grant under this section shall give preference to small manufacturers that are participants in the Manufacturing Extension Partnership program.

   Inserted: (J) Location of product development.--Each recipient of a loan shall commit to developing and manufacturing the product for which a loan is sought in the State that provides the loan for the duration of the loan if such product is developed during such duration.

   Inserted: (f) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary to carry out the provisions of this section, $52,000,000 for each of the fiscal years 2008 through 2014, of which--

   Inserted: (1) $50,000,000 shall be for providing grants under this section; and

   Inserted: (2) $2,000,000 shall be for the costs of administering grants awarded under this section.

   Original wording

   On page 24, between lines 19 and 20, insert the following:

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As printed