If your business touches America's food supply chain — from a farm operation to a refrigerated trucking company — a new federal loan program went live on May 1, 2026, that may be the most accessible capital you have seen in years.
The SBA Grocery Guarantee is an expansion of the SBA's International Trade Loan (ITL) program. It offers a 90% federal guarantee on loans up to $5 million for businesses across the food and agriculture supply chain. The higher guarantee makes lenders significantly more willing to deploy capital — which means more approvals and better terms for qualifying borrowers.
What the Grocery Guarantee Is — and What It Is Not
The Grocery Guarantee is not a new standalone loan program. It is an expansion of the existing SBA ITL program — same structure, broader eligibility, and a higher guarantee percentage than the standard SBA 7(a) loan.
The key change: the ITL program historically required borrowers to have international sales activity. That requirement no longer applies to food supply chain businesses. If your business operates in a qualifying NAICS code, you are eligible regardless of whether you have ever done a dollar of international business.
The 90% federal guarantee means the government absorbs 90 cents of every dollar lost if a borrower defaults. That shifts lender risk substantially — and for businesses that have struggled to qualify under conventional underwriting, the difference in approval likelihood is significant.
Who Qualifies
The SBA opened the Grocery Guarantee to a wide range of food and agriculture NAICS codes effective May 1, 2026. Eligible businesses include:
- Farmers and ranchers — grain and oilseed farming, vegetable and melon farming, fruit and tree nut farming, cattle ranching, hog and pig farming, poultry and egg production, sheep and goat farming
- Aquaculture and fishing — commercial fishing and aquaculture operations
- Agricultural support — crop and animal support services, farm and garden equipment wholesalers, farm supply merchants
- Food distribution — grocery and related product wholesalers, packaged frozen food wholesalers, farm product raw material wholesalers
- Grocery retailers — supermarkets and other grocery retailers
- Logistics and warehousing — specialized freight trucking (local and long-distance), refrigerated warehousing and storage, farm warehousing and storage
If your business falls within these categories, confirm your specific NAICS code with an SBA-approved lender before applying. Eligibility is determined at the NAICS code level.
What the Funds Can Be Used For
Approved uses under the Grocery Guarantee include:
- Equipment purchases and upgrades — processing machinery, refrigeration, farm equipment, vehicles
- Facility expansion and buildout — production facilities, processing plants, cold storage
- Supply chain infrastructure — distribution systems, warehousing, logistics capacity
- Working capital — operational expenses, inventory, materials, and production costs
The program supports both capital expenditures and working capital needs, which gives food supply chain operators flexibility to address immediate cash flow gaps alongside longer-term growth investments.
The Core Loan Terms
| Details | |
|---|---|
| Maximum loan amount | $5 million |
| Federal guarantee | 90% |
| Program | SBA International Trade Loan (ITL) |
| Eligible as of | May 1, 2026 |
| International sales required | No |
| Standard 7(a) guarantee (for comparison) | 75% |
Interest rates and repayment terms are set by the lender within SBA guidelines. Because the program is lender-driven, terms vary — working with an experienced SBA broker can help you identify lenders actively participating in the ITL program and compare offers before committing.
How the 90% Guarantee Changes Your Approval Odds
Here is the practical reality: a lender offering a conventional business loan is taking 100% of the risk. Under standard SBA 7(a), they take 25%. Under the Grocery Guarantee, they take 10%.
That shift in risk exposure changes which businesses get approved and on what terms. A regional food producer with limited operating history or insufficient collateral — who might not clear a conventional underwriting threshold — becomes a much more viable borrower when the government is covering 90% of the lender's downside.
This is the structural advantage the Grocery Guarantee creates. It is not about subsidized rates. It is about moving the risk dial enough that lenders say yes where they previously said no.
What to Prepare Before You Apply
The Grocery Guarantee runs through a standard SBA-approved lender. You apply to the lender, not the SBA directly. Before reaching out, have the following ready:
- Two to three years of business tax returns — personal and business
- Recent profit and loss statement and balance sheet — ideally no more than 90 days old
- NAICS code confirmation — verify your primary code falls within the eligible groups
- Use of funds description — specific, documented explanation of how the capital will be deployed
- Collateral inventory — equipment, real estate, or other business assets
The cleaner your documentation, the faster your application moves. SBA loans are underwritten thoroughly — preparation upfront reduces delays significantly.
The SBA Grocery Guarantee is one of the more borrower-friendly programs the SBA has introduced in recent years. A 90% guarantee with no international sales requirement opens the door for a wide range of food and agriculture businesses that have historically found SBA financing difficult to access.
If your business operates in the food supply chain and you want to evaluate whether this program fits your capital needs, speak with an SGF advisor. You can also review our full SBA financing overview or use our Business Loan Calculator to model potential payment scenarios before you apply.