Big news for America’s small manufacturers: Starting October 1, 2025, the Small Business Administration announced it is waiving most upfront loan fees for manufacturing businesses through the end of fiscal year 2026. If you’re running a small manufacturing operation or planning to start one, this could put thousands of dollars back in your pocket right when you need it most.
The Bottom Line: What’s Being Waived
Here’s what small manufacturers can expect under the new fee structure:
7(a) Loans: For manufacturing loans up to $950,000, the upfront fee drops to 0%. This typically ranges from 2-3.75% of the loan amount, meaning you could save anywhere from $10,000 to over $35,000 on a larger loan.
504 Loans: All manufacturing 504 loans will have both the upfront fee and annual service fee waived completely. These fees normally add up to thousands of dollars over the life of your loan.
Why This Matters Now
Small manufacturers represent 98% of all U.S. manufacturing businesses, yet accessing capital has remained one of the biggest obstacles to growth. Loan fees, while seemingly small percentages, can represent significant barriers when you’re trying to expand production, purchase new equipment, or hire additional workers.
“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,” said SBA Administrator Kelly Loeffler in announcing the initiative.
This timing is particularly strategic. As companies increasingly look to reshore production and reduce dependence on foreign suppliers, small manufacturers need working capital to seize these opportunities. The fee waiver means that money you would have paid in loan costs can now go directly toward equipment, hiring, training, and expansion.
Who Qualifies
The fee waiver applies to small businesses classified under NAICS codes 31-33, which covers:
- Food and beverage manufacturing
- Textile and apparel production
- Wood product manufacturing
- Chemical manufacturing
- Fabricated metal products
- Machinery manufacturing
- Electronics and computer manufacturing
- And dozens of other manufacturing subsectors
If your business makes something, whether it’s precision components, consumer goods, or industrial equipment, you likely qualify. Check the SBA’s size standards to confirm your business meets the definition of “small” for your industry.
How to Access These Loans
The SBA doesn’t lend directly to businesses. Instead, you’ll work with participating lenders who offer SBA-guaranteed loans. Here’s how to get started:
Use SBA Lender Match: Visit the SBA Lender Match portal to connect with participating lenders in your area who can provide 7(a) and 504 financing at competitive rates.
Consider the New MARC Program: The Manufacturers’ Access to Revolving Credit (MARC) Loan Program is the SBA’s first-ever loan program dedicated exclusively to small manufacturers. This revolving credit line provides flexible working capital specifically designed for manufacturing operations.
Prepare Your Application: Even with waived fees, you’ll still need solid financials, a clear business plan, and documentation of how you’ll use the funds. The better prepared you are, the faster you can access capital.
What You Can Use the Funding For
SBA loans can support virtually any legitimate business purpose:
- Purchasing manufacturing equipment and machinery
- Expanding or renovating production facilities
- Hiring and training workers
- Acquiring working capital for inventory and materials
- Refinancing existing debt
- Buying out a partner or purchasing another business
The Bigger Picture
This initiative is part of a broader push to strengthen American manufacturing and reduce reliance on foreign supply chains. For small manufacturers, it’s an opportunity to grow strategically while keeping more capital in your business.
The fee waiver creates a limited-time window (October 1, 2025, through September 30, 2026) to access growth capital more affordably than usual. If you’ve been considering expansion, new equipment, or bringing production back from overseas, this is your moment.
Take Action
Manufacturing is experiencing a renaissance in America, with renewed focus on domestic production, supply chain security, and industrial innovation. The SBA’s fee waiver ensures that small manufacturers have the financial tools to be part of this comeback.
Don’t wait until the fiscal year is nearly over. Start the conversation with lenders now, get your financial documentation in order, and position your business to take full advantage of this opportunity. The fees you save could become the competitive advantage that powers your next phase of growth.
Ready to explore your options? Visit the SBA Lender Match portal to connect with participating lenders, or learn more about SBA loan programs for manufacturers on the official SBA website.
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