Why It Matters

A recent Congressional Research Service report on the SBA’s Manufacturing in America E2G Grant Initiative examines a new Small Business Administration effort to provide training and technical assistance to small manufacturers as the Trump administration simultaneously proposes steep reductions in funding for the agency’s broader entrepreneurial development programs. The Manufacturing in America E2G Grant Initiative, or MAGI, is part of the SBA’s effort to strengthen domestic manufacturing by addressing workforce shortages, operational challenges and barriers to government contracting.

The funding contrast is significant. The Trump administration’s fiscal 2027 SBA budget request proposes $21.4 million for entrepreneurial development programs, all for veterans programs, compared with $330 million Congress appropriated for entrepreneurial development programs for fiscal 2026. MAGI itself is being funded by reprogramming fiscal 2026 entrepreneurial development appropriations rather than through a separate congressional appropriation.

The Big Picture

MAGI will provide up to $50 million through as many as 10 grants, with individual awards of up to $5 million, to eligible organizations that provide training and technical assistance to small manufacturers participating in the SBA’s Empower to Grow program. The SBA planned to announce the awards by the end of August. The initiative emphasizes hands-on, in-person training and targets industries including aerospace, construction equipment, metal fabrication, electrical equipment, food processing, medical and precision manufacturing, advanced manufacturing and robotics, although recipients may serve other manufacturing sectors. The SBA independently confirms the initiative offers up to $50 million to as many as 10 organizations.

The Empower to Grow program, formerly known as the 7(j) Management and Technical Assistance program, provides business courses, tailored training and one-on-one consulting to eligible small businesses. It is designed to help businesses improve operations, hiring, regulatory compliance and competitiveness for federal, state and local government contracts.

Small businesses participating in E2G must meet eligibility requirements tied to economic and social disadvantage and federal contracting assistance. According to CRS, eligible businesses include those located in areas where the county unemployment rate is at least 140% of the national or state unemployment rate, whichever is lower; businesses owned by individuals whose family income did not exceed 150% of the federal poverty level in the preceding year; and businesses eligible for the SBA’s 8(a) Business Development program.

To execute MAGI, the SBA reprogrammed other fiscal 2026 appropriations it received for entrepreneurial development programs rather than seeking new funding from Congress. Grant recipients are expected to work with other SBA resource partners and participants in the agency’s access-to-capital programs, including the 7(a) loan guaranty program. Unlike some SBA entrepreneurial development initiatives, MAGI does not require recipients to provide matching funds. Recipients are not expected to make subawards but may partner with other organizations to carry out their proposals. Awards are expected to have a 12-month period of performance.

MAGI builds on an earlier, smaller manufacturing grant initiative. In 2025, the SBA offered up to $1.1 million to three organizations to provide training and technical assistance to small manufacturers participating in E2G. The new initiative represents a substantial expansion, increasing the potential funding to $50 million and the number of recipients to as many as 10.

The Bottom Line

The Trump administration’s fiscal 2027 SBA budget request proposes $21.4 million for entrepreneurial development programs, with the funding directed toward veterans outreach programs, compared with the $330 million Congress appropriated for entrepreneurial development programs for fiscal 2026. At the same time, the administration has made manufacturing a priority within SBA assistance programs, including through MAGI, a new 90% Made in America loan guarantee for small manufacturers and waived loan fees for qualifying manufacturing businesses for fiscal 2026.

The differing approaches raise a broader question for Congress about whether to maintain funding across the SBA’s existing network of management and technical assistance programs or concentrate resources on priorities such as manufacturing. Congress has previously raised concerns about potential duplication among SBA management and technical assistance programs, making MAGI’s expansion relevant to the larger debate over how the agency should structure and fund small-business counseling and training.

Access the Legis1 platform for comprehensive political news, data, and insights.

Spot something wrong? Report an issue with this article