U.S. Reps. Darin LaHood (R-IL) and Stephanie Murphy (D-FL) introduced bipartisan legislation today to modernize the decades old financing tools used by farmers and manufacturers to grow and create more jobs.
The Modernizing Agriculture and Manufacturing Bonds Act (MAMBA), H.R. 5422, aims to help struggling manufacturers and first-time farmers expand their businesses, invest in new equipment and hire more workers.
In a press release this morning, LaHood said that these bonds are a key economic development tool for state and local development agencies and are a key instrument for financing small- to mid-sized manufacturers.
Under MAMBA, the definition of “manufacturing facility.” would be expanded to enable small issue manufacturing bonds to support manufacturers that produce intangible property.
Increase the maximum bond size limitation from $10 million to $30 million. Increase the limitation on small issue bond proceeds for first-time farmers.
Repeal the separate dollar limitation on the use of bond proceeds for depreciable property and modify the definition of “substantial farmland” with the intent to allow first time farmers an easier access to gain capitol by determining substantial farmland as 30% of the average size instead of median size as it is currently defined.
The legislation has been endorsed by development finance agencies,
private sector entities, and key industry stakeholders, according to the press release, including the Florida Development Finance Corporation, Illinois Finance Authority, the
Council of Development Finance Agencies (CDFA), and the National Council
of State Agricultural Finance Programs.