1.
(a)This Act may be cited
as the American Metalworking
Manufacturers Support Act
.
(b)Congress finds the following:
(1)There are roughly 35,000 metalworking
companies with approximately 2 million employees throughout the country who
manufacture critical products for the defense, aerospace, medical, automotive,
agriculture, and construction industries, among many others.
(2)Uncertainty
surrounding the timeliness of paid receivables, and a need for steady cash flow
for day-to-day operations and investments creates challenges for small middle
market manufactures who are a critical part of the industrial supply
chain.
(3)In the current financial environment, most
lending institutions will not provide loans to metalworking companies.
(4)The U.S.
Government should help foster an environment that encourages metalworking in
America by supporting small middle market manufacturers.
(5)The Federal
Government currently incentivizes larger businesses and private contractors to
use small businesses and tax credits are important criteria to foster growth
among small middle market manufacturers.
<enum>I</enum><header>SMALL
METALWORKING BUSINESS ASSISTANCE PROGRAMS</header>
<section display-inline="no-display-inline" id="H9FFF747333764AC39DC490CE81B392D5" section-type="subsequent-section"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle:</text>
<paragraph id="HA7D719CF835D44DD9B2952CE6C75D8E5"><enum>(1)</enum><header>Cost</header><text display-inline="yes-display-inline">The term <term>cost</term> has the same
meaning as is given the term <term>cost</term> in section 502(5) of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a(5)).</text>
</paragraph><paragraph id="HD18BC505AB2F47A1BCA1DB48958A8E6C"><enum>(2)</enum><header>Small
metalworking business</header><text>The term <term>small metalworking
business</term> means a small business concern, as defined under section 3(a)
of the Small Business Act (15 U.S.C. 632(a)), whose primary purpose is the
domestic manufacturing and production of parts, components, or assemblies by
using metalworking and forming technologies, including metal stamping,
fabricating, slide forming, fine blanking, laser cutting, punching, deep
drawing, swaging, roll forming, spinning, machining, grinding, rotary
machining, cold heading, forging, casting, wire electrical discharge machining,
conventional electrical discharge machining, and computer numerical control
machining.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HD808912103104FE7AFAE8FBD07D1DC7D"><enum>(3)</enum><header>Guarantee</header><text display-inline="yes-display-inline">The term <term>guarantee</term> has the
same meaning as is given the term <term>loan guarantee</term> in section 502(3)
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(3)).</text>
</paragraph><paragraph id="H6898FD373DCD468794F357296DDAA856"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph></section><section id="H19785652B84F456BB831121741689BC8"><enum>102.</enum><header>Loans
authorization</header>
<subsection id="H391EDC401067474089E4FCD7C055D60A"><enum>(a)</enum><header>Loans
authorized</header><text>Funding as may be necessary, not to exceed
$10,000,000,000 for costs under this section shall be available to the
Secretary, without further appropriation or fiscal year limitation, for the
costs of such program. All funds received by the Secretary in connection with
loans made pursuant to paragraph (b) shall be paid into the general fund of the
Treasury for reduction of the public debt.</text>
</subsection><subsection id="H7335042555834C799C0CCCE621033A98"><enum>(b)</enum><header>Terms and
conditions of loans</header>
<paragraph id="H887D07480B2946DF8331326AC6A69427"><enum>(1)</enum><header>In
general</header><text>A loan made pursuant to this section—</text>
<subparagraph id="H4049464A0BD84D9A827544D4BC260B97"><enum>(A)</enum><text>shall be for a
maximum amount of $3,000,000;</text>
</subparagraph><subparagraph id="H819F424E8C2441A089E0C370B01F682E"><enum>(B)</enum><text>shall be for a
maximum period of 18 months, after which the Secretary shall require any small
metalworking business receiving a loan to repay the loan in full; and</text>
</subparagraph><subparagraph id="HA1F605D59E36481C8239A49EE07F56C6"><enum>(C)</enum><text>shall not obligate
the recipient of such loan to pay any interest.</text>
</subparagraph></paragraph><paragraph id="H11EAB99A6DE54232BFD5B567030C9674"><enum>(2)</enum><header>Additional terms
and conditions</header><text display-inline="yes-display-inline">The Secretary
may establish additional terms and conditions with respect to loans made under
this section.</text>
</paragraph></subsection><subsection id="H6D09B039F6464893A512FA494BE58C7F"><enum>(c)</enum><header>Application</header><text>An
eligible small metalworking business that seeks a loan under this section shall
submit an application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.</text>
</subsection></section><section id="HAD91238E69F8453ABCFA3F998DB0E389"><enum>103.</enum><header>Small
metalworking business stabilization program</header>
<subsection id="H3BEA63FE748147CBA447FAD226C27C5C"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H9408078290D6475CBF5738D15100A700"><enum>(1)</enum><text>the term
<term>Administrator</term> means the Administrator of the Small Business
Administration;</text>
</paragraph><paragraph id="H0F38C0282EC843178F04B8937C3BC265"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>qualifying small business
loan</term> means a loan made under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) to a small metalworking business before the date of enactment of
this Act;</text>
</paragraph><paragraph id="H2F7652D57BF64AFB8BB74604C62F535D"><enum>(3)</enum><text>the term
<term>small metalworking business</term> means a small business concern, as
defined under section 3(a) of the Small Business Act (15 U.S.C. 632(a)), whose
primary purpose is the domestic manufacturing and production of parts,
components, or assemblies by using metalworking and forming technologies,
including metal stamping, fabricating, slide forming, fine blanking, laser
cutting, punching, deep drawing, swaging, roll forming, spinning, machining,
grinding, rotary machining, cold heading, forging, casting, wire electrical
discharge machining, conventional electrical discharge machining, and computer
numerical control machining; and</text>
</paragraph><paragraph id="H3CBFCF2C45184946A22839ED4D689D3C"><enum>(4)</enum><text>the term
<term>stabilization loan</term> means a loan under the program established
under subsection (b) made by the Administrator either in cooperation with a
bank or other financial institution through an agreement to participate on a
deferred (or guaranteed) basis or directly.</text>
</paragraph></subsection><subsection id="H25B3B056459049A3B8EE59E1B9FFCF3"><enum>(b)</enum><header>Establishment of
a loan program</header><text>Subject to the availability of appropriations, the
Administrator shall carry out a program to provide stabilization loans to
viable (as such term is defined pursuant to regulations prescribed by the
Administrator) small metalworking businesses that have a qualifying small
business loan and are experiencing immediate financial hardship.</text>
</subsection><subsection id="HBF5384ACA55E41A4806BA8AF6202E600"><enum>(c)</enum><header>Technical
assistance</header><text>The Administrator shall establish a technical
assistance program to assist a bank or other financial institution that has an
agreement with the Administrator to provide stabilization loans.</text>
</subsection><subsection id="H601BC8D27050474AB39411857E660003"><enum>(d)</enum><header>Application</header><text>To
be eligible for a stabilization loan, a small metalworking business shall
submit to the Administrator an application at such time, in such manner, and
containing such information as the Administrator may require.</text>
</subsection><subsection id="H9F75E0199A3E4C9CAD00A200BF3F7FE"><enum>(e)</enum><header>Use of
funds</header><text display-inline="yes-display-inline">A stabilization loan
shall be used to make periodic payments of principal and interest, either in
full or in part, on a qualifying small business loan for—</text>
<paragraph id="H02E3481DCD524378A3A6125822000055"><enum>(1)</enum><text display-inline="yes-display-inline">amounts payable during a period of time not
to exceed 6 months; or</text>
</paragraph><paragraph id="H9DB1A82ED5014770BCDD06E7F2143273"><enum>(2)</enum><text>a
period of time during which the total amount of such periodic payments does not
exceed $50,000,</text>
</paragraph><continuation-text continuation-text-level="subsection">whichever
is less.</continuation-text></subsection><subsection id="HFF1B917FB99647CEA6C79F4F6531C77C"><enum>(f)</enum><header>Loan
Terms</header><text>A stabilization loan shall—</text>
<paragraph id="H623ECEE1BEB048B086D1AF22D43EADFE"><enum>(1)</enum><text>carry a 100
percent guaranty; and</text>
</paragraph><paragraph id="H5FDB81C2629948189F88008C42115900"><enum>(2)</enum><text>have interest
fully subsidized for the period of repayment.</text>
</paragraph></subsection><subsection id="H10D4A1FE919B4BA9B9F53E9250F084CC"><enum>(g)</enum><header>Repayment</header><text>Repayment
of a stabilization loan shall—</text>
<paragraph id="H1E8EB49CC4F147F5B6D8005C5C00A086"><enum>(1)</enum><text>be amortized over
a period of time not to exceed 5 years; and</text>
</paragraph><paragraph id="H46663BF2652F426E9E45CCC482EBA79"><enum>(2)</enum><text>begin not later
than 12 months after the end of the month or other period for which the last
periodic payment (as referred to in subsection (d)) is made.</text>
</paragraph></subsection><subsection id="H36C9190439E84D058C6E08DD8416D39"><enum>(h)</enum><header>Collateral</header><text>The
Administrator may accept any available collateral, including subordinated
liens, to secure a stabilization loan.</text>
</subsection><subsection id="H00C2A74D1BC6438F822CE139C697D029"><enum>(i)</enum><header>Fees</header><text>The
Administrator may not charge any processing fees, origination fees, application
fees, points, brokerage fees, bonus points, prepayment penalties, or other fees
for a stabilization loan.</text>
</subsection><subsection id="H6C49800FA72A49D58E6EC09575008EF0"><enum>(j)</enum><header>Sunset</header><text display-inline="yes-display-inline">An application submitted under subsection
(c) for a stabilization loan may not be accepted after December 31,
2010.</text>
</subsection></section><enum>II</enum><header>REVENUE
PROVISION</header>
<section id="H43021130FD494FD49E563235FAC7F4C8"><enum>201.</enum><header>Small business
metalworking credit</header>
<subsection id="HFF442C2022BB4AACADB181AF10070AE"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HE3CF9B82F3CE44BCA55B148B599D08AC" style="OLC">
<section id="H5B706858CF9A472AB14C6FFA37ACC140"><enum>45R.</enum><header>Small
metalworking business credit</header>
<subsection id="HCF6CFAA2BBF34B1EB7F9793BE6FC00F8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
section 38, the small metalworking business credit for any taxable year is an
amount equal to 30 percent of the amounts paid or incurred for metal parts,
components, or assemblies produced for the taxpayer under a contract between
the taxpayer and an eligible small metalworking business.</text>
</subsection><subsection id="HB6A612DF10444277AD26F094AACDF227"><enum>(b)</enum><header>Eligible small
metalworking business</header><text>For purposes of this section, the term
<term>eligible small metalworking business</term> means any person—</text>
<paragraph id="HFECFF5E90F9740F8BF053C5E00167E7F"><enum>(1)</enum><text>who is unrelated
to the taxpayer,</text>
</paragraph><paragraph id="H2F2FDAC3A5794BB18B2FED8DFF4225D6"><enum>(2)</enum><text>who is engaged in
the trade or business of metalworking in the United States, and</text>
</paragraph><paragraph commented="no" id="H77E6B3C50658465EBD2DE700990144B5"><enum>(3)</enum><text>who is a small
business as defined under section 3(a) of the Small Business Act (15 U.S.C.
632(a)).</text>
</paragraph></subsection><subsection id="HE82E2EE433A14D609311390061B690F"><enum>(c)</enum><header>Definition and
special rule</header><text>For purposes of this section—</text>
<paragraph id="H6F7F26E9A33646A984BD96A972E6219C"><enum>(1)</enum><header>Metalworking</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>metalworking</term> means the production of parts, components, or
assemblies by using metalworking and forming technologies, including metal
stamping, fabricating, slide forming, fine blanking, laser cutting, punching,
deep drawing, swaging, roll forming, spinning, machining, grinding, rotary
machining, cold heading, forging, casting, wire electrical discharge machining,
conventional electrical discharge machining, and computer numerical control
machining.</text>
</paragraph><paragraph id="H21015977D0E349368C6C006FB744D84C"><enum>(2)</enum><header>Related
person</header><text display-inline="yes-display-inline">A person shall be
treated as related to another person if they bear a relationship to such other
person described in section 267(b) or 707(b).</text>
</paragraph><paragraph id="HE22E0C12C7D141C98B985072E6A9C602"><enum>(3)</enum><header>Election not to
take credit</header><text>No credit shall be determined under subsection (a)
for any amount if the taxpayer elects not to have this section apply to such
amount.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCBD0CF5E8AEC4BACBC878F285B618921"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H5F95E16867A34628867C11FEB9F6082D"><enum>(1)</enum><text>Section 38(b) of
such Code is amended by striking <quote>plus</quote> at the end of paragraph
(34), by striking the period at the end of paragraph (35) and inserting
<quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H9853A3355BD3482D9ED49EE4F0E05D18" style="OLC">
<paragraph id="H53F405DAAEC146C883A97B21BCEF1BC"><enum>(36)</enum><text display-inline="yes-display-inline">the small metalworking business credit
determined under section
45R(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC1F7507210F243BA84AC4749BD2F4E08"><enum>(2)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H095DAC9082C64F0597F4F3858A31B78" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45R. Small metalworking business
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF6F466D4E46441F2B68714489000134F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section>