Investments

(a) In general The Fund shall, in furtherance of the objectives described in section 2(b), make investments, either individually or in partnership with third parties, in the form of— (1) equity investments; and (2) loans and loan guarantees. (b) Investment areas (1) In general The Fund may only make investments in the following sectors: (A) Strategic manufacturing Strategic manufacturing sectors, including areas described in the initial list of key technology focus areas under section 10387(c) of the CHIPS Act of 2022 (42 U.S.C. 19107(c)). (B) Technology and innovation Technology and innovation sectors, including additive manufacturing, robotics, and industrial data systems. (C) Supply chain security Sectors related to supply chain security, including domestic sourcing of critical inputs and reshoring of key supply lines. (D) Workforce and SME Development Sectors related to workforce and small- and medium-enterprise development, including small- and medium-size manufacturers and registered apprenticeship and vocational programs. (2) Updating by the Board The Board of Governors shall periodically review the sectors described in paragraph (1) and may add or subtract sectors as the Board of Governors determines appropriate. (c) Applications A company may apply to the Fund for an investment in such form and manner as the Fund may determine appropriate, but such application shall include the type of the requested investment and the amount of the requested investment. (d) Golden share requirement for equity investments (1) In general The Fund may only make an equity investment in a company if the investment gives the Fund veto authority over the following while the Fund holds the investment: (A) Location and capacity Any action of the company to— (i) engage in offshoring (as defined in section 5(g)(3)); (ii) shut down strategic facilities; (iii) otherwise transfer ownership of any sensitive facilities; or (iv) reduce capacity below a minimum level determined by the Fund. (B) Ownership and control Any action of the company to— (i) sell the company to foreign persons (as defined in section 800.224 of title 31, Code of Federal Regulations); (ii) acquire another company in a hostile takeover; or (iii) enter into a merger that would result in the loss of domestic control over the operations of the company. (C) Intellectual property Any action of the company to— (i) license any intellectual property of the company to foreign companies or other persons; (ii) sell any patent or process trade secrets; (iii) otherwise transfer ownership of any intellectual property; or (iv) move research and development to a foreign country. (D) Supply chain integrity Any action of the company to— (i) end production of critical components; or (ii) change to foreign persons (as defined in section 800.224 of title 31, Code of Federal Regulations), for sensitive inputs. (E) Lockouts and mass layoffs Any lockout or mass layoff (as such term is defined in section 2(a) of the Worker Adjustment and Retraining Notification Act (29 U.S.C. 2101(a))). (2) Treatment in bankruptcy Notwithstanding any other provision of law, if the Fund makes an equity investment described in paragraph (1), the Fund’s authorities described in paragraph (1) shall continue during any bankruptcy proceeding with respect to such a company. (e) Requirements for all investments (1) In general The Fund may only make an investment in a company if the following requirements are met: (A) Limitation on moving operations overseas The company agrees not to move any operations of the company from the United States to a foreign country during the 50-year period beginning on the date the investment is made. (B) Limitation on expanding operations overseas The company agrees not to expand operations of the company in a foreign country during the 50-year period beginning on the date the investment is made. (C) Domestic investment requirement The company agrees that proceeds from the investment will only be used for projects in the United States. (D) Company located in the United States The company is— (i) is headquartered in the United States and the management and board of directors of the company are based in the United States; and (ii) is not— (I) owned, directed, controlled, financed, or influenced, directly or indirectly, by an entity of concern or a foreign entity of concern (as such terms are defined, respectively, for purposes of subparagraph (F)); or (II) owned or controlled by a subsidiary or other affiliate of such an entity of concern or foreign entity of concern. (E) Application requirements The company submits a detailed application to the Fund that demonstrates the following: (i) Economic and national security alignment The investment would strengthen domestic supply chains and reduce foreign reliance. (ii) Commercial viability and financial strength Each project to be funded with the proceeds of the investment would succeed long-term and with the investment proceeds not serving as the sole financing for the project. (iii) Technical feasibility and readiness For each project to be funded with the proceeds of the investment, realistic plans, permits, construction timelines, and milestones. (iv) Workforce development commitments Plans for training and hiring, and the extent to which such training and hiring would be done in partnership with community colleges, universities, or workforce development entities, including joint labor-management organizations. (F) National security restrictions The company agrees not to engage in joint research or sensitive technology licensing with— (i) an entity of concern (as defined in section 10114(a) of the CHIPS Act of 2022 (42 U.S.C. 18912(a))); or (ii) a foreign entity of concern (as defined in section 9901 of title XCIX of division H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651)). (G) Financial and performance conditions The company agrees not to use proceeds from the investment to make stock buybacks or pay dividends. (H) Labor and compliance The company agrees— (i) that all laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration, or repair work carried out, in whole or in part, with assistance made available under this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code, provided that the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code; and (ii) to remain neutral with respect to any lawful effort by employees at a project funded in whole or in part with assistance made available under this Act to organize or bargain collectively, including refraining from— (I) mandatory anti-union meetings; (II) retaliation or discrimination based on protected organizing activity; (III) expenditure of company resources to oppose union representation; and (IV) interference with employee communications regarding organizing. (2) Violations With respect to a company that receives an investment from the Fund and violates the requirements of this subsection— (A) the Fund shall suspend, divest from, or clawback such investment; and (B) the company is ineligible for future investments from the Fund. (f) Authority for profit sharing The Fund may, as part of an investment in a company made under this Act, enter into an agreement with the company to share in the future profits of projects funded with the proceeds of the investment. (g) Board approval required for large investments The Fund may not make an investment in an amount of more than $250,000,000 without the prior approval of the Board of Governors. (h) Termination of equity investments With respect to each equity investment made by the Fund in a company, the Fund shall sell such investment at a time determined by the Chair as being in the best interest of the Fund’s revenue earning.