If you run a small manufacturing shop and you've been sitting on an equipment purchase or facility expansion, the math just changed. The SBA eliminated upfront guaranty fees on 7(a) manufacturing loans up to $950,000 and wiped both the upfront fee and the annual service fee on all 504 manufacturing loans for fiscal year 2026. The window is October 1, 2025 through September 30, 2026.
When the SBA announced this on X, the post hit 832,000 impressions and 2,100 bookmarks. Small manufacturers are paying attention.
What the Fee Waivers Actually Save You
SBA loan fees are not small. On a standard 7(a) loan, upfront guaranty fees run 2% to 3.75% depending on loan size and guarantee percentage. On a $500,000 loan, that's $10,000 to $18,750 out of pocket before a dollar goes to work.
Under the FY2026 waiver, manufacturers borrowing up to $950,000 through 7(a) pay a 0% upfront guaranty fee. That savings hits your balance sheet directly.
The 504 program gets an even broader break. Both the upfront guaranty fee and the annual service fee drop to 0% for all manufacturing loans, regardless of amount. That works out to roughly 20 basis points off the effective interest rate compared to standard 504 terms. On a 20-year 504 loan, that compounds into real money. For context on how current tariff policy is already squeezing manufacturer margins, these fee savings matter more than usual.
Who Qualifies
Eligibility is simple. Your business must be classified as a small manufacturer under NAICS codes 31-33. That covers food processing, textile mills, fabricated metals, transportation equipment, computer and electronics manufacturing, and more. The loan proceeds need to go toward manufacturing purposes: land, buildings, heavy machinery, or other capital assets that support production.
Most manufacturers with fewer than 500 employees qualify. Some subsectors allow up to 1,500. If you're not sure, the SBA's Lender Match portal will pair you with participating lenders who can confirm eligibility before you invest time in an application.
7(a) vs. 504: Choosing the Right Program
These programs serve different purposes, and the fee waivers apply to each differently.
The 7(a) program is the SBA's general-purpose loan. It covers working capital, equipment, inventory, and real estate. Loan amounts go up to $5 million, but the fee waiver only applies to manufacturing loans of $950,000 or less. Above that threshold, standard fees apply.
The 504 program is built for fixed assets: real estate and heavy equipment. It works through a three-party structure where a conventional lender covers 50%, a Certified Development Company (CDC) covers 40% with an SBA-guaranteed debenture, and the borrower puts in 10%. The fee waiver applies to all 504 manufacturing loans regardless of size. For shops weighing major equipment investments like 5-axis machining centers or facility buildouts, 504 is typically the better fit.
The MARC Loan: A New Tool in the Kit
The fee waivers aren't the only thing worth knowing about. In September 2025, the SBA launched MARC -- the Manufacturers' Access to Revolving Credit program. It's the agency's first-ever loan program built exclusively for manufacturers.
MARC operates as either a revolving line of credit or a term loan, giving manufacturers working capital flexibility that 7(a) and 504 weren't designed for. The target use case: funding inventory, bridging gaps between order placement and payment, or scaling capacity to meet new demand.
By December 2025, the SBA had approved $3.5 million in MARC loans to four manufacturers. First transactions ranged from a $250,000 facility for a porcelain enamel manufacturer to a $1.5 million line of credit for a welding and fabrication firm.
MARC can be stacked alongside conventional loans and other SBA products. If you're already carrying a 504 on your building and a 7(a) on equipment, a MARC line can add liquidity without touching your existing debt structure.
Why This Matters for Reshoring
The timing isn't coincidental. U.S. manufacturers are dealing with tariff shifts, supply chain pressure, and rising demand for domestic production all at the same time. The SBA's Made in America Manufacturing Initiative ties these loan incentives directly to the reshoring agenda.
Ninety-eight percent of U.S. manufacturers are classified as small businesses. These are the 10-to-200-employee shops that form the Tier 2 and Tier 3 layers of domestic supply chains. When a major OEM reshores a product line, the capacity to support it has to exist at those tiers first. Removing fee friction on capital equipment loans addresses one of the real barriers to expanding that capacity. The 8-month wait for power drops in South Carolina shows that capital access is only one piece of the reshoring puzzle, but it is the piece the SBA can directly fix.
SBA Administrator Kelly Loeffler framed it directly: "98% of U.S. manufacturers are small businesses -- and by reducing loan fees, the SBA is eliminating barriers to capital so they can invest those dollars back into the mission of rebuilding America's industrial base."
The SBA also launched the Make Onshoring Great Again Portal, a free database of more than one million domestic suppliers and producers. For manufacturers looking to source domestically or position themselves as alternatives to foreign suppliers, it's worth a look alongside the financing changes.
How to Apply
Start at lending.sba.gov/lender-match. Fill out a short form and the SBA matches you with participating lenders in your area. The SBA doesn't lend directly -- it guarantees loans made by banks, credit unions, and CDCs.
A few things to confirm before you apply:
- Your primary NAICS code falls within 31-33. If your business does both manufacturing and distribution, the primary code needs to be manufacturing to qualify for the waiver.
- Loan approval -- not just application -- needs to happen before September 30, 2026. Applications near the deadline may not close in time.
- 504 loans require a CDC. The SBA can connect you with one, or find an authorized CDC through your local SBA district office.
- For MARC, ask specifically for the program by name. Not every loan officer knows it yet.
Frequently Asked Questions
What SBA loan fees are waived for manufacturers in FY2026?
For 7(a) manufacturing loans up to $950,000, the upfront guaranty fee is 0%. For all 504 manufacturing loans regardless of size, both the upfront guaranty fee and the annual service fee are 0%. These waivers apply to loans approved between October 1, 2025 and September 30, 2026.
Who qualifies for the SBA manufacturing loan fee waivers?
Small businesses classified under NAICS codes 31-33 that meet SBA size standards. The loan must be used for manufacturing purposes such as purchasing land, buildings, or machinery. Most manufacturers with fewer than 500 employees qualify, though some subsectors go up to 1,500.
What is the SBA MARC loan program?
The Manufacturers' Access to Revolving Credit (MARC) program is the SBA's first loan program built exclusively for manufacturers. Launched September 2025, it provides working capital as either a revolving line of credit or term loan, and can be stacked alongside other SBA and commercial loans.
How much can manufacturers save with the fee waivers?
On a $500,000 7(a) loan, waived upfront fees save roughly $10,000 to $18,750. On 504 loans, the combination of waived upfront and annual service fees reduces the effective interest rate by approximately 20 basis points over the loan term.
How do I apply for an SBA manufacturing loan with waived fees?
Start at the SBA Lender Match portal at lending.sba.gov/lender-match. Confirm your primary NAICS code is in the 31-33 range and that the funds are going toward manufacturing purposes. Submit well before September 30, 2026 to ensure your loan closes within the waiver window.