A pilot program designed to help small businesses gain access to capital and expand operations has been included in the National Defense Authorization Act (NDAA).
Sens. Cory Booker (D-NJ) and Kirsten Gillibrand (D-NY) authored the Scale-Up Manufacturing Investment Company Act and introduced the measure in 2015.
Officials said the language in the NDAA directs the Defense Department to increase capital for manufacturing entrepreneurs and small businesses looking to scale-up and commercialize their innovations.
“Small businesses form the foundation of the American economy and help fuel innovation across industries,” Booker said. “This pilot program will help small manufacturing businesses in our defense sector access capital at a critical stage in their development so they can expand their operations and, in turn, create more good-paying jobs. It will also help prevent these firms from moving their operations overseas.”
The lawmakers said it can often take 10 years or more for advanced manufacturing firms to get to a viable commercial scale, adding the firms burn through tens of hundreds of millions of dollars before they even collect their first dollar of revenue.
“If we want our economy to grow and create more jobs, we need to give small businesses the tools to turn their innovative ideas into successful business opportunities and expand their manufacturing operations here at home instead of being forced to outsource that work to stay competitive,” Gillibrand said. “This pilot program will provide critical resources and opportunities for local entrepreneurs to expand their businesses and ensure that new technologies are made here in America.”