Bill Summary
This bill, proposed by the Senate and House of Representatives, seeks to amend the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) to allow financial institutions to provide funding for inventory of American manufactured products. The purpose of this legislation is to support American manufacturers and their supply chain during the COVID-19 pandemic. The funding will be exclusively used for finished products made in the United States by businesses with less than 2,000 employees. The amount of financing provided cannot exceed 110% of the finished product's sales in the 12 months prior to March 21, 2020, and any products manufactured in response to COVID-19 will not be included in this calculation.
Possible Impacts
1. This legislation may benefit small businesses (less than 2,000 employees) by providing financial assistance for their inventory of American manufactured products.
2. It may also help preserve American manufacturers and their supply chain by ensuring that their finished products are given priority for financing.
3. The legislation may limit the amount of financing that can be given to businesses (not in excess of 110% of sales) and excludes any products related to COVID-19 from being counted in the sales calculation.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6679 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6679
To amend the CARES Act to authorize the financing of inventory of
American manufactured products by financial institutions, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 2020
Mr. Kelly of Mississippi introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the CARES Act to authorize the financing of inventory of
American manufactured products by financial institutions, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. AUTHORIZING THE FINANCING OF INVENTORY OF AMERICAN
MANUFACTURED PRODUCTS BY FINANCIAL INSTITUTIONS.
(a) In General.--Title II of the Coronavirus Aid, Relief, and
Economic Security Act of 2020 (15 U.S.C. 9071 et seq.) is amended--
(1) by inserting after section 9071 the following section:
``SEC. 9072. AUTHORIZING THE FINANCING OF INVENTORY OF AMERICAN
MANUFACTURED PRODUCTS BY FINANCIAL INSTITUTIONS.
``(a) In General.--
``(1) Notwithstanding any other provision of law, to
preserve American manufacturers and their supply chain, the
Secretary of the Treasury shall provide financial assistance
that shall exclusively be used for the financing of finished
products manufactured in the United States after 21 March 2020
by businesses of--
``(A) less than 2,000 employees;
``(B) which financing shall not be in excess of 110
percent of sales of the finished product based off the
12 months of sales prior to 21 March 2020; and
``(C) which financing of American manufactured
products that were produced in response to COVID-19
pursuant to section 564 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 201 et seq.) shall not be
counted in the calculation of sales of the finished
product in the 12 months of sales prior to 21 March
2020.''.
<all>