Hearings to examine financing America's manufacturing and industrial boom

Small Business Administration OversightSenate Small Business and Entrepreneurship · May 14, 2025 · 119th Congress
The Senate Committee on Small Business and Entrepreneurship held this hearing to examine how SBA lending and investment programs — including the Small Business Investment Company (SBIC) and Rural Business Investment Company (RBIC) programs — can finance a domestic manufacturing revival, and to hear from small manufacturers on Chair Ernst's proposed Made in America Financing Act. Begins at ▶ 0:19:26
Transcript
Highlights

Title

Financing small manufacturers amid SBA capital and tariff debates

Purpose

The Senate Committee on Small Business and Entrepreneurship held this hearing to examine how SBA lending and investment programs — including the Small Business Investment Company (SBIC) and Rural Business Investment Company (RBIC) programs — can finance a domestic manufacturing revival, and to hear from small manufacturers on Chair Ernst's proposed Made in America Financing Act. Much of the questioning shifted to the effects of the administration's 2025 tariffs on small manufacturers, with witnesses describing rising costs, falling exports, and business uncertainty. Begins at▶ 0:19:26.

Who spoke

• Chair Joni Ernst (R-IA)▶ 0:19:26: Opened by describing a hollowed-out industrial base and a $29.7 billion trade deficit with China▶ 0:20:41, and touted her bipartisan Made in America Financing Act with Sen. Coons to double the SBA loan limit from $5 million to $10 million for manufacturers▶ 0:22:29; later questioned witnesses on barriers to growth and reshoring advantages▶ 1:22:21.

• Sen. Ed Markey (D-MA), Ranking Member▶ 0:24:18: Warned that tariffs are hitting roughly 40,000 small manufacturers as both importers and exporters and cited a forecast 35% drop in June shipping volume▶ 0:24:48▶ 0:25:06; contrasted Biden-era SBA manufacturing lending with Trump's first-term record▶ 0:26:47 and later pressed Ms. Robbins on whether tariffs amount to an "extinction event" and disproportionately favor large companies▶ 1:36:00▶ 1:36:36.

• Mr. John Mickelson, Midwest Growth Partners co-founder▶ 0:33:28: Said his firm has invested in 42 companies via RBIC/SBIC vehicles, growing portfolio employment from 7 to over 3,000▶ 0:34:46, and backed the Investing in All of America Act to expand SBIC capital for rural manufacturers▶ 0:37:42.

• Ms. Julie Robbins, EarthQuaker Devices CEO▶ 0:38:42: Testified that pre-tariff component costs of $1.40 rose to domestic alternatives priced $20.70–$31.19, making U.S. sourcing unviable▶ 0:41:48, and said exports are down 50–100% with bankruptcy possible by year-end despite perfect credit▶ 0:57:47▶ 1:28:31.

• Mr. Brian Riley, Guardian Bikes CEO▶ 0:43:45: Described building the first large-scale U.S. bicycle factory in decades in Seymour, Indiana, employing 250 people and making 2,000 bikes a day▶ 0:47:22, crediting SBA 7(a) loans and private equity for getting the company off the ground▶ 0:47:48.

• Mr. Benjamin Geis, Eagle Private Capital / Small Business Investor Alliance chair▶ 0:49:03: Said SBIC funds hold over $46 billion in committed capital, about 20% invested in small manufacturers▶ 0:35:45, and urged passage of the Investing in All of America Act to update leverage caps unchanged despite roughly 30% inflation▶ 0:53:25.

• Sen. Todd Young (R-IN), Acting Chair▶ 0:54:24: Presided over part of the hearing and questioned Mr. Riley on how public-private partnerships helped scale Guardian Bikes▶ 1:01:35 and Mr. Mickelson on expanding capital access for rural entrepreneurs▶ 1:04:14.

• Sen. Jeanne Shaheen (D-NH)▶ 0:55:22: Asked Ms. Robbins about tariffs pushing her to consider offshoring production despite export program support▶ 0:56:19, and about the proposed elimination of the STEP export-assistance program▶ 0:58:24.

• Sen. Jacky Rosen (D-NV)▶ 1:05:59: Asked Ms. Robbins about the stress tariff uncertainty places on her business and employees▶ 1:07:05, and asked Mr. Geis about investment in emerging industries like clean energy▶ 1:10:27.

• Sen. Josh Hawley (R-MO)▶ 1:12:01: Questioned Mr. Geis on the SBIC program's history and impact, citing $192 million invested in Missouri in 2024 supporting over 3,000 jobs▶ 1:13:38.

• Sen. John Hickenlooper (D-CO)▶ 1:16:09: Asked about expanding capital access to lower-income communities via the Investing in All of America Act▶ 1:16:38 and questioned Mr. Riley on navigating tariff uncertainty▶ 1:18:15.

• Sen. Maria Cantwell (D-WA)▶ 1:30:09: Asked Ms. Robbins about export markets, which she said have dropped sharply due to tariff chaos▶ 1:30:39, and discussed reliance on exports to allied countries such as Europe, Australia, Canada, and Japan▶ 1:31:15.

Key moments

• Ernst said the manufacturing sector is just 10.1% of U.S. GDP and cited a $29.7 billion January trade deficit with China▶ 0:20:41.

• Markey said the Biden-era SBA made more than $10 billion in loans to small manufacturers, contributing to 775,000 new manufacturing jobs, versus $2 billion less lending under Trump's first-term SBA▶ 0:26:47.

• Robbins testified that a domestically sourced circuit component cost $20.70–$31.19 versus $1.40 from her overseas supplier before the 2025 tariffs, calling reshoring economically unviable▶ 0:41:48.

• Riley said Guardian Bikes became the first large-scale U.S. bicycle factory in decades, now employing 250 people and producing 2,000 bikes per day in Seymour, Indiana▶ 0:47:22.

• Mickelson said Midwest Growth Partners' portfolio companies grew from 7 employees after its first 2014 investment to over 3,000 today, citing AgCertain (22 to 42 jobs) and Shells By Design (40 to 67 jobs) as examples▶ 0:34:46▶ 0:36:21▶ 0:36:49.

• Geis said SBIC funds hold over $46 billion in committed capital, with about 20% invested in domestic small manufacturers, and backed raising SBIC leverage caps unchanged despite roughly 30% inflation since they were last set▶ 0:35:45▶ 0:53:25.

• Robbins said her company is "clinging to life," with exports down 50–100%, and warned it risks bankruptcy by year's end despite never having missed a loan payment▶ 0:42:39▶ 1:28:31.

• Markey asked Robbins whether tariffs could become an "extinction event" and whether the president is "picking winners and losers"; Robbins agreed the impact is disproportionate, noting large companies get exemptions while she lacks comparable access▶ 1:36:36▶ 1:37:02.

• Robbins submitted for the record a competitor's analysis showing the cost increase from attempting to reshore just one of hundreds of components used in her products▶ 1:34:13▶ 1:34:53.

• Ernst and Mickelson discussed the Investing in All of America Act, which Mickelson said would direct 60% of new SBIC investment toward small manufacturers if enacted▶ 1:27:23.

Metadata

CommitteeSenate Small Business and Entrepreneurship
Chamber / CongressSenate · 119th Congress
DateMay 14, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript208 caption blocks · 9,299 words · 1:43:12 runtime
EventCongress.gov 336953