If you’re a manufacturer, getting the capital you need to grow is one of your biggest challenges. We have some great news: the government just made it significantly cheaper to get an SBA 7(a) loan to expand your business.
Starting October 1, 2025, the SBA is eliminating the upfront guaranty fee on 7(a) loans of $950,000 or less for most manufacturing businesses.
Key Takeaways
- The SBA is offering a 0% upfront fee on most 7(a) loans for manufacturers for FY 2026.
- This could save your business over $12,600 on a typical $750,000 loan.
- BankLink connects you to a network of 140+ lenders to help you get funded.
Why Is the SBA Doing This?
This isn’t just a random discount. It’s part of the government’s “Made in America” initiative, a larger effort to strengthen the U.S. supply chain and support domestic manufacturing. By making it cheaper to get financing, the SBA is encouraging business owners like you to invest in the equipment, facilities, and people needed to produce more goods right here in the USA.
What This Means for Your Bottom Line
So, what does a “0% upfront fee” actually mean in real dollars? Let’s break it down.
On a typical $750,000 SBA 7(a) loan, the upfront fee could be over $12,600. With this new waiver, that fee is $0.
That’s over $12,600 that stays in your pocket, ready to be invested directly back into your business. It’s a game-changing reduction in the cost of financing.
How You Can Use Your SBA Loan to Grow
This is the perfect opportunity to make those key investments that will take your business to the next level. Think bigger than just a loan; think about what it can build.
- Purchase New Machinery or Upgrade Equipment
Imagine adding a new CNC machine to increase precision or an automated packaging line to improve efficiency. These investments can lower your per-unit costs and increase your profit margins for years to come. - Expand Your Production Space
Use the capital to add a new wing to your facility, lease a larger warehouse, or build out your existing floor plan. More space means more capacity to take on bigger orders. - Increase Your Working Capital
Give your business the breathing room it needs. A working capital injection can help you buy raw materials in bulk at a discount, manage seasonal cash flow, and confidently cover payroll. - Hire More Skilled Staff
Bring on the skilled technicians, machine operators, and managers you need to boost production and ensure quality as you grow. - Refinance Existing Business Debt
If you have existing business loans with higher interest rates or less favorable terms, you may be able to refinance them with an SBA 7(a) loan to improve your monthly cash flow.
Is Your Business a “Manufacturer”?
This new rule applies to a wide range of businesses in the manufacturing sector, which the government classifies under NAICS codes 31-33. If your business creates products, you likely qualify. This includes:
- Machine Shops & Metal Fabricators
- Food & Beverage Producers
- Wood Product & Furniture Manufacturers
- Printing & Related Support Activities
- Plastics & Rubber Product Manufacturers
- Apparel & Textile Mills
If you’re not sure of your code, you can look up your business on the official U.S. Census Bureau NAICS lookup tool here.
Getting Started is Simple with BankLink
We know that the process of applying for a business loan and finding the right lender can seem complicated. That’s why we created BankLink.
Our smart, simple process doesn’t just make the application easier; it connects your loan request to a network of over 140 banks and credit unions. This means you get a better chance of finding the perfect funding partner for your manufacturing business, all through one simple form.
Ready to see if you qualify for a 0% upfront fee SBA loan? Take the next step today.
Frequently Asked Questions (FAQ)
How do I know if I’m officially a “manufacturer”?
The SBA defines manufacturers based on official industry codes (NAICS codes 31-33). The easiest way is to use the link above to check your code. If you’re still not sure, don’t worry. Fill out our form, and we can help you determine if your business qualifies.
Is this a limited-time offer?
This fee waiver is for the government’s 2026 fiscal year, which runs from October 1, 2025, to September 30, 2026.
How is an SBA loan different from a regular bank loan?
SBA-guaranteed loans often come with longer repayment terms and lower down payment requirements than conventional loans, making them a great option for growing businesses. The 0% fee makes them an even better deal right now.
Is the application process difficult?
It can be, but not with us. We connect you with a large network of lenders to increase your chances of success and guide you every step of the way.
Can I use this loan to refinance my current business debt?
Yes, in many cases. An SBA 7(a) loan can be used to refinance existing business debt, which can help lower your monthly payments and improve cash flow. We can help you determine if your current debt qualifies.
Take Advantage of 0% Guaranty Fees for 2026
Start the BankLink Lender Match process. Use this form to share high-level information about your business and intended project (5 minutes).
Resources for Buyers
Resources on buying a business, finding your lender, and the SBA financing process.
