Business, Freight News, Logistics

CORONAVIRUS: As Coronavirus Exposes Weaknesses in U.S. Supply Chain, Booker Introduces Bill to Help Manufacturers Scale-up Operations

[ March 19, 2020   //   ]

As the Coronavirus pandemic shines a light on serious vulnerabilities in the U.S. supply chain, Senator Cory Booker (D-NJ) reintroduced legislation to increase access to capital for U.S. entrepreneurs looking to scale-up and commercialize their advanced manufacturing operations. The Scale-Up Manufacturing Investment Company (SUMIC) Act would establish a fund, administered by the Small Business Administration, that would offer federal loan guarantees to investors who invest in advanced manufacturing startups that make their products here in the U.S.

“The Coronavirus has highlighted our economy’s troubling over-reliance on China for supplies,” Booker said. “These vulnerabilities we’re seeing in our supply chain speak to our failure as a country to invest in our own competitiveness. To remain competitive and keep innovative technologies and capabilities in the U.S., the federal government must partner with the private sector to increase access to capital. This bill invests in the potential of entrepreneurs in the advanced manufacturing sector by providing them with the funding they need to scale-up and commercialize new technologies.”

Lack of access to capital often pushes innovative advanced manufacturing startups to other nations that provide lucrative financing opportunities to bring products to scale. This migration drains the U.S. of innovative manufacturing capabilities and high-paying, high-skilled manufacturing jobs.