1.This Act may be cited as
the Growth Opportunity Act of
2007
.
2.Grants for
States to establish revolving loan funds to provide loans to small
manufacturers
(a)In
this section:
(1)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).
(2)Manufacturing
Extension Partnership programThe 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).
(3)The term revolving loan fund means a revolving
loan fund described in subsection (d).
(4)The
term Secretary means the Secretary of Commerce.
(5)The term small manufacturer means a
manufacturer with less than $50,000,000 in annual sales.
(b)
(1)The Secretary is authorized to award grants to States to
establish revolving loan funds.
(2)The Secretary may not award a grant under this section in
an amount that exceeds $10,000,000.
(3)A State may not receive more than 1 grant under this
section in any fiscal year.
(c)Criteria for
the awarding of grants
(1)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.
(2)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.
(3)In
awarding grants each year, the Secretary shall give preference to States that
have not previously been awarded a grant under this section.
(4)
(A)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.
(B)Each
application submitted under subparagraph (A) shall contain the
following:
(i)Evidence that the
applicant can establish and administer a revolving loan fund.
(ii)The applicant's
need for a grant under this section.
(iii)The impact that
receipt of a grant under this section would have on the applicant.
(d)
(1)A State receiving a grant under this section shall
establish, maintain, and administer a revolving loan fund in accordance with
this subsection.
(2)A
revolving loan fund shall consist of the following:
(A)Amounts from
grants awarded under this section.
(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.
(3)Amounts
in the revolving loan fund shall be available for the provision and
administration of loans in accordance with subsection (e).
(4)A
State may enter into an agreement with a Center to administer a revolving loan
fund.
(e)
(1)A State receiving a grant under this section shall use
the amount in the revolving loan fund to make the following loans:
(A)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:
(i)Patent
research.
(ii)Market
research.
(iii)Technical
feasibility testing.
(iv)Competitive
analysis.
(B)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.
(2)Loan terms and
conditionsThe following shall apply with respect to loans
provided under paragraph (1):
(A)Except
as provided in subparagraph (B), loans shall be for a period not to exceed 10
years.
(B)A
recipient of a loan may prepay such loan before the end of the duration of such
loan without penalty.
(C)Loans shall bear interest at a rate of 3.5 percent
annually.
(D)Loans shall accrue interest during the entire duration
of the loan.
(E)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.
(F)No
collateral or personal guaranty shall be required for receipt of a loan.
(G)Secured
interest in intellectual propertyEach 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.
(H)Development of
business plans and budgetsEach recipient of a loan shall
develop, in cooperation with a Center, a business plan and a budget for the use
of loan amounts.
(I)Preference for
loan applicants that participate in the Manufacturing Extension Partnership
programIn 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.
(J)Location of
product developmentEach 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.
(f)Authorization
of appropriationsThere is authorized to be appropriated to the
Secretary to carry out the provisions of this section, $52,000,000 for each of
fiscal years 2008 through 2014, of which—
(1)$50,000,000 shall
be for providing grants under this section; and
(2)$2,000,000 shall
be for the costs of administering grants awarded under this section.