The Small Business Administration announced Sept. 19 that it would waive most upfront fees for small manufacturers in fiscal year 2026.
The SBA believes that with the fee burden reduced, it will empower more small manufacturers with the capital to increase hiring, growth, and production, reshore jobs and supply chains, as well as bolster national security.
“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. “With lower fees and new loan programs that support access to working capital, we are helping small businesses lead America’s industrial comeback.”
“Every dollar a small manufacturer saves on loan fees is a dollar they can put back into their business — to hire another employee, buy a new piece of equipment, or expand their production line,” 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.
For 7(a) manufacturing loans of up to $950,000, the upfront fee will be 0%. For all 504 manufacturing loans, the upfront fee and annual service fee will each be 0%. These new fee structures will be effective from Oct. 1, 2025, through Sept. 30, 2026.
The 7(a)-loan program is SBA’s flagship program, a public-private partnership which offers government-guaranteed loans to help small businesses finance equipment purchases, real estate acquisition, working capital (including revolving credit lines), and business expansion.
The 504-loan program provides long-term, fixed-rate financing for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.
Small manufacturers can visit the SBA Lender Match portal to be paired with participating SBA Lenders who can provide 7(a) and 504 funding at competitive rates. Manufacturers are also encouraged to utilize SBA’s new Manufacturers’ Access to Revolving Credit (MARC) Loan Program, which is the agency’s first-ever loan program dedicated to America’s small manufacturers.
