U.S. Sen. Kirsten Gillibrand wants to help upstate New York manufacturers get the capital they need while keeping jobs in the United States.
Gillibrand, D-N.Y., unveiled legislation, the Scale-Up Manufacturing Investment Company Act of 2015, that would establish a new loan program designed to assist manufacturing companies commercialize their products.
The loan program would be modeled after the Small Business Administration's Small Business Investment Companies initiative. Private investment firms participating in the program could raise capital and invest in manufacturing companies.
Any costs associated with the program would be paid for by fee, interests and programs from the investments, according to Gillibrand's office.
Gillibrand said several manufacturers can't obtain the capital they need to expand operations. This leads to companies expanding overseas in other countries, which provide the financial resources they need.
She cited a study which found nearly all manufacturing technology-intensive start-ups licensed by the Massachusetts Institute of Technology launched its commercial production operations overseas because of better capital and investment opportunities.
"The Scale-Up Manufacturing Investment Company Act will provide critical resources and opportunities for local entrepreneurs and small businesses to bring their innovations to market, and ensure that new technologies are made here in America, creating more jobs and growing our economy," Gillibrand said.
Gillibrand visited central New York Tuesday to announce the legislation. The bill is being backed by area manufacturers and interest groups, including the Manufacturers Association of Central New York.
Karyn Burns, MACNY's vice president of communications and government relations, said Gillibrand's measure will provide manufacturers with opportunities to grow.
"I thank Senator Gillibrand for her leadership on this critical issue, and we look forward to working with her to build an even stronger and more robust manufacturing community right here in New York state," Burns said.
Gillibrand's bill is cosponsored by four Democratic senators, including U.S. Sen. Cory Booker of New Jersey and U.S. Sen. Patty Murray of Washington.
The bill has support from some national groups, including the Informational Technology and Innovation Foundation and the Small Business Investor Alliance.