Certified development company loans for small manufacturers

(a) Contribution requirement Section 502(a)(3)(C) of the Small Business Investment Act of 1958 (15 U.S.C. 696(a)(3)(C)), as so designated by this Act, is amended— (1) by redesignating clauses (i), (ii), (iii), and (iv) as subclauses (I), (II), (III), and (IV), respectively, and adjusting the margins of such subclauses accordingly; (2) by inserting before subclause (I), as so redesignated, the following: (i) for a small business concern that is not a small manufacturer (as defined in section 501(e)(7))—; (3) in subclause (III), as so redesignated, by striking clauses (i) and (ii) and inserting subclauses (I) and (II); (4) in subclause (IV) as so redesignated, by striking the period at the end and inserting; or; and (5) by adding at the end the following: (ii) for a small manufacturer (as defined in section 501(e)(7))— (I) at least 5 percent of the total cost of the project financed, if the small business concern has been in operation for a period of 2 years or less; (II) at least 5 percent of the total cost of the project financed, if the project involves a limited or single purpose building or structure; (III) at least 10 percent of the total cost of the project financed if the project involves both of the conditions set forth in subclauses (I) and (II); or (IV) at least 5 percent of the total cost of the project financed, in all other circumstances, at the discretion of the development company.. (b) Collateral requirements Section 502(a)(3)(E)(i) of the Small Business Investment Act of 1958 (15 U.S.C. 696(a)(3)(E)(i)), as so designated by this Act, is amended by adding at the end the following: Additional collateral shall not be required in the case of a small manufacturer (as defined in section 501(e)(7)).. (c) Debt refinancing Section 502(a)(7)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 696(a)(7)(B)), as so designated by this Act, is amended— (1) in the matter preceding clause (i), by inserting (or in the case of a small manufacturer (as defined in section 501(e)(7)), that does not exceed 100 percent of the project cost of the expansion) after cost of the expansion; (2) in clause (v), by adding and at the end; (3) by striking clause (vi); and (4) by redesignating clause (vii) as clause (vi). (d) Amount of guaranteed debenture Section 503(a) of the Small Business Investment Act of 1958 (15 U.S.C. 697(a)) is amended by adding at the end the following: (5) Any debenture issued by a State or local development company to a small manufacturer (as defined in section 501(e)(7)) with respect to which a guarantee is made under this subsection shall be in an amount equal to not more than 50 percent of the cost of the project with respect to which such debenture is issued, without regard to whether good cause has been shown..