Senate bill triples borrowing limits for small manufacturers and first-time farmers

What does this do?

S 2100 raises the borrowing limits on two types of tax-exempt government bonds: small issue manufacturing bonds and first-time farmer bonds. For manufacturers, the per-project cap rises from $10 million to $30 million, and the per-company total rises from $40 million to $120 million, with both figures indexed to inflation going forward. For first-time farmers, the cap rises from $450,000 to $1 million, the separate limit on used farm equipment is removed, and the measure of qualifying farmland shifts from median to average county farm size.

Who does it affect?

Small and mid-sized manufacturers seeking to finance facility expansions or new production are directly affected, as are people buying a farm for the first time. State and local governments that issue and administer these bonds are also affected.

Why does it matter?

Raising the caps and indexing them to inflation means more projects and purchases could qualify for lower-cost government-backed financing over time. Shifting the farmland measure from median to average county size could make more land eligible for the first-time farmer program.

Where does it stand?