On Sept. 4, the U.S. Small Business Administration launched its first loan program dedicated to supporting America’s small manufacturers, which make up 98% of all U.S. manufacturing companies.
The 7(a) Manufacturer’s Access to Revolving Credit (MARC) Loan Program will offer working capital for small businesses engaged in manufacturing, specifically designed to provide greater flexibility and reduced red tape.
“The new MARC Loans represent a powerful source of targeted capital for those who are growing our nation’s production,” said SBA Administrator Kelly Loeffler. “For decades, our manufacturers and workers were crushed by bad trade deals that outsourced American jobs, supply chains, and strength. This working capital program will empower manufacturers to create jobs, supercharge growth, and reshore American industrial might.”
The MARC Program expands SBA’s portfolio of loan programs by adding a source of liquidity for small manufacturers, while offering lenders maximum flexibility to structure working capital loans. This provides more options to meet businesses’ specific working capital needs.
- MARC lines may be structured as either a revolving line of credit or term loan.
- The MARC is positioned to help growing manufacturers access flexible working capital as they scale their operations and take on new customers.
- Loan funds may be used for any short-term working capital need of the manufacturer, supporting everything from inventory purchases to new projects.
- MARC lines of credit can help manufacturers expand their working capital by leveraging the available equity of their existing facility or equipment.
The MARC Program complements the SBA’s core 7(a) and 504 loan programs, providing a flexible new line of credit to manufacturers and lenders. MARC Loans can be used in combination with SBA and conventional commercial loans, making it a potent new tool in support of the administration’s effort to reshore American industrial dominance.
“The new MARC loan program from SBA is a targeted investment in our nation’s industrial strength. This flexible capital for small manufacturers will help them grow, expand operations, engage in workforce development, and power the great American comeback right here throughout the region,” said SBA Atlantic Regional Administrator Matt Coleman who oversees the federal agency’s operations throughout New York, New Jersey, Puerto Rico, and the U.S. Virgin Islands.
According to the state Department of Labor and Workforce Development, the manufacturing sector contributed $52.6 billion to New Jersey’s gross state product in 2023, accounting for 8.8% of the total. More than 252,000 people were employed at 10,000 manufacturing establishments.
The annual wage for manufacturing employees was $96,500, 19.3% above the state average. The top manufacturing areas are biopharmaceuticals and life sciences; food and beverage; printing and packaging; petroleum and chemicals; and advanced manufacturing and logistics
