Coronavirus has impacted just about every aspect of our daily lives. Seeing a vulnerability in the U.S. supply chain, Sen. Cory Booker 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.”
Lack of Capital
Booker pointed to the lack of access to capital as reasons that companies look outside the U.S. for manufacturing capabilities.
“To keep innovative technologies and capabilities in the U.S., the federal government must partner with the private sector to increase access to capital,” the senator said. “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.”
Other nations will provide lucrative financing opportunities to attract innovative advanced manufacturing startups. This migration drains the U.S. of innovative manufacturing capabilities and high-paying, high-skilled manufacturing jobs.
Economic Packages, Cost-sharing
Booker’s introduction of the SUMIC Act comes on the heels of other actions he’s made to support state residents.
Last week, Booker joined Sens. Kirstin Gillibrand (D-NY) and Kamala Harris (D-CA) in urging the Senate to include paid family leave and paid sick days in any economic package it passes. He also introduced to eliminate patient cost-sharing for Coronavirus testing and treatment, and to create a special enrollment period for individuals without coverage.
Additionally, Booker has written separately to Senate leaders and the Health and Human Services (HHS) Secretary urging them to prioritize funding for state and local health departments, which are on the front lines of this public health crisis.
Previously, Booker wrote separately to Senate leaders and the HHS Secretary urging them to prioritize funding for state and local health departments, which are on the front lines of this public health crisis.