The Small Business Administration (SBA) has introduced the Manufacturing Loan Program (MLP), a dedicated track within its existing loan system. Rather than creating a new product, the program brings together two long-standing SBA tools, the 7(a) loan and the 504 loan, and applies them with refinements aimed at manufacturers. The SBA has also launched the Manufacturers’ Access to Revolving Credit (MARC), a new delivery method under 7(a) that provides revolving or term credit specifically for working capital.
Temporary Fee Relief
For Fiscal Year 2026 (October 1, 2025 – September 30, 2026), the SBA is waiving certain loan fees for manufacturers:
- 7(a) Manufacturing Loans: No upfront fees on loans up to $950,000.
- 504 Manufacturing Loans: No upfront fees and no annual service fees, regardless of loan size.
These temporary fee waivers reduce borrowing costs and may help manufacturers move forward with projects such as equipment upgrades, facility expansion, or workforce development.
For FY 2026, small manufacturers can access SBA-backed financing without paying upfront loan fees — a temporary window that lowers the cost of growth.
Why It Matters
Manufacturers often face large upfront costs when investing in machinery, technology, or new production lines. By adjusting existing SBA programs to better fit manufacturing needs and offering a temporary fee waiver, the SBA is giving smaller firms an incentive to evaluate projects that may have been delayed.
How to Access the Loans
- 7(a) and 504 Loans under MLP: These remain the mainstay for financing equipment purchases, real estate, or facility expansion. Manufacturers can use the SBA Lender Match portal to connect with approved lenders.
- MARC Loans (new 7(a) method): Designed specifically for manufacturers (NAICS 31–33), MARC loans provide up to $5 million for working capital. They can be structured as term loans or revolving credit lines, but proceeds may not be used for ownership changes, debt refinancing, or taxes in arrears. SBA’s guaranty covers up to 75 percent (or 85 percent for smaller loans), with a maximum guarantee exposure of $3.75 million.
Next Steps for Business Owners
For manufacturers planning investments, FY 2026 may be a timely year to consider SBA-backed financing. The fee waivers are temporary, but the MLP framework suggests a longer-term focus on supporting U.S. manufacturing.
Are you unsure if your business is ready to apply? We can help you develop a lender-ready package that positions your company for success.
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