The U.S. Small Business Administration announced a significant fee waiver for small manufacturers effective October 1, 2025 through September 30, 2026. The waiver eliminates upfront guaranty fees on SBA 7(a) manufacturing loans up to $950,000 and waives both the upfront fee and annual service fee on all SBA 504 manufacturing loans regardless of size.
SBA guaranty fees are typically 2%–3.75% of the guaranteed loan amount depending on size — a significant closing cost on larger transactions. On a $750,000 manufacturing loan with a 75% guarantee ($562,500 guaranteed portion), the normal upfront fee would be approximately $11,250–$21,000. Under the FY2026 waiver, that fee is zero.
For SBA 504 manufacturing loans, both the upfront fee and the annual service fee (typically 0.5% of the outstanding guaranteed balance) are waived — delivering savings at closing and reducing the ongoing annual cost of the loan for the full term.
The waiver applies to businesses classified under NAICS codes 31–33 (manufacturing). The borrower must be an SBA-eligible small manufacturer, and the loan purpose must be consistent with manufacturing operations — equipment, working capital, real estate for manufacturing use, or expansion of manufacturing capacity.
The SBA also launched MARC — the Manufacturers' Access to Revolving Credit program — the agency's first dedicated revolving credit product for small manufacturers. Ask your SBA lender about both the fee waiver and MARC when evaluating your financing options.
The waiver runs through September 30, 2026 — the end of SBA fiscal year 2026. Loans must be approved before the deadline to receive the fee benefit. Manufacturers planning capital projects should engage SBA lenders now to ensure adequate time for underwriting and approval before the September 30 cutoff.
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