Scale-Up Manufacturing Investment Company Act of 2025

The Scale-Up Manufacturing Investment Company Act of 2025 would create a new program under the Small Business Investment Act (SBIA) to help scale advanced, manufacturing-focused small and emerging firms. Through the Scale-Up Manufacturing Investment Company (SUMIC) program, the U.S. Small Business Administration (SBA) would license and leverage private investment funds to make debt and equity investments in qualifying manufacturing projects—specifically first commercial production facilities, new manufacturing capabilities, or the introduction of emerging manufacturing technologies. The program is designed to bridge the capital gap (“valleys of death”) that often prevents promising manufacturing start-ups from moving from prototype to full-scale production in the United States, with the aim of keeping technology-driven manufacturing domestic and boosting jobs and competitiveness. Key features include a license-based system for participating investment funds, government-backed leverage (up to 1:1 with private capital, subject to caps), strict oversight and valuation requirements, and outreach to disadvantaged groups. The legislation also proposes a Scale-Up Manufacturing Credit Council to advise the SBA and includes related administrative and regulatory provisions, plus related amendments to banking, bankruptcy, and CRA rules to reflect investments in SUMIC funds. If enacted, the program could steer private capital toward domestic manufacturing scale-up while transferring some risk and cost considerations to federal credit programs.