Revitalizing American Manufacturing Through Small Businesses
During a hearing held by the Senate Small Business Committee on Wednesday, Sen. Joni Ernst emphasized that the rejuvenation of American industrial capacities starts with supporting small businesses.
As the chair of the committee, Ernst discussed the topic “Refueling American Manufacturing Comeback,” featuring Small Business Administrator Kelly Loeffler. In her opening remarks, which were shared with media outlets, she pointed out that a significant portion of the U.S. industrial base has been shifted to benefit China.
“In Iowa alone, nearly one in six manufacturing jobs has vanished over the past 25 years. The decline in U.S. manufacturing employment has been stark, falling by 28% over the last 40 years, landing at levels unseen since 1946,” she stated. “Today, only 3.7% of Americans are employed in manufacturing, a stark contrast to half of that number four decades ago, which peaked in the late 60s.”
Ernst further noted that there are now almost twice as many workers in state and local government roles compared to those on factory floors.
She remarked, “Closed plants and empty parking lots represent the ongoing decline of the hard-earned knowledge and skills that once supported our economy.”
However, Ernst expressed optimism, indicating that with President Donald Trump and Administrator Loeffler’s leadership, there are opportunities to improve the situation.
Ernst was invited to speak about the bipartisan U.S. Manufacturing Financial and Financial Act, which aims to increase the SBA loan limit to between $5-$10 million. She believes this funding is essential for small businesses to innovate, grow, and develop the next generation of American workers.
“This investment will significantly benefit the entire supply chain since smaller manufacturers are vital to the operational success of larger companies,” she added. “To restore our manufacturing capabilities, we need to focus on small and medium-sized enterprises. It’s crucial that cutting-edge innovations and efficient production happen domestically rather than overseas.”
Ernst pointed out that the manufacturing loan program has doubled since Trump took office, suggesting that lifting loan restrictions would enable small businesses to acquire better equipment, hire more staff, and expand. She highlighted that small manufacturers make up a whopping 98% of U.S. manufacturing firms.
Loeffler is set to convey in her statement that the legislation discussed aims to invigorate the American manufacturing sector and properly structure a supply chain that supports job creation by providing essential capital for production.
She emphasized, “We are moving away from supporting global interests and focusing on small businesses and local manufacturers who risk everything to achieve their dreams. Together with President Trump, we aim to empower these small entities to lead a revival in American industry. Congress now has the chance to reinvigorate this comeback, providing capital that is stronger and more resilient than ever.”
Loeffler concluded, “This legislation sends a clear message that America is committed to rebuilding its manufacturing capabilities and workforce.”
She further added, “It’s straightforward. It’s responsive. It delivers exactly what job creators and lenders have been requesting.”
