Dive Brief:
- The U.S. Small Business Administration announced its Made in America Manufacturing Initiative last week, aimed at cutting red tape and regulatory costs for manufacturers.
- As part of the effort, the agency said it will cut $100 billion in regulation through the Office of Advocacy and launch a Red Tape Hotline for small business owners and manufacturers to share feedback and call out what they believe to be unnecessary regulations.
- Additionally, the SBA is looking to expand financing options and make it easier for people to qualify for small business loans, including for real estate, construction and equipment purchases.
Dive Insight:
The SBA initiative is part of President Donald Trump’s agenda to create jobs and reshore manufacturing, leveraging tariffs as a tool to entice companies to invest in U.S. facilities to avoid import taxes. The president’s actions in recent weeks have rattled markets, but also pressured companies across sectors to commit to U.S. investment and expansion opportunities.
Vice President JD Vance spoke about the administration's domestic manufacturing push during a visit to a plastics manufacturing facility in Bay City, Michigan, on Friday.
“We’re going to cut your taxes, we’re going to slash your regulations and we’re going to reduce the cost of energy to build things right here in this country,” Vance said during his remarks.
He toured a Vantage Plastics plant and gave remarks about the progress Trump has made in delivering a “great American comeback” in the first two months of his second term. This was Vance’s first official visit to Michigan since before the election.
During his remarks, Vance said the country gained 10,000 manufacturing jobs during Trump’s first full month in office in February, marking a turnaround after losing an average of 10,000 manufacturing jobs per month last year.
“Our goal is to make it easier and more affordable to make things again in the United States,” Vance said. “If you invest in America, in American jobs, in American workers and in American businesses, you’re going to be rewarded.”
To accelerate the administration’s goals, the SBA said it will cut billions of dollars in regulation through the Office of Advocacy, a watchdog group that backs the interests of small businesses before Congress. The group is tasked with identifying and eliminating rules, policies and procedures that burden small businesses and manufacturers.
There are more than 600,000 small business manufacturers in the U.S., employing 4.8 million workers with an annual payroll of more than $277 billion, according to the Office of Advocacy. More than 20% of all small U.S. manufacturers deal in fabricated metal products.
In addition to regulatory cuts, the administration is looking to expand access to the SBA’s 504 loan program, which provides funding for real estate, construction and equipment purchases.
It is also expanding the use of the SBA’s 7(a) Working Capital Pilot program, which offers financing for inventory purchases and export-related expenses for international markets, according to the announcement. Both loan programs operate without taxpayer funding.
“If you want to be rewarded, build in America,” Vance said during his remarks. “If you want to be penalized, build outside of America. It’s as simple as that.”
