The SBA Made in America Loan Guarantee went live May 1, 2026. It offers manufacturers a 90% federal guarantee on loans through the SBA's International Trade Loan (ITL) program, up from the standard 75% on traditional 7(a) loans.
Update, October 2026: The fiscal year 2026 fee waiver ended on September 30, 2026. SBA continued fee relief for manufacturers in fiscal year 2027 in a narrower form for 7(a) loans. Details are below.
What Changed and Why It Matters
Under SOP 50 10 8.1, the ITL program serves small businesses engaged in or preparing to engage in international trade, or adversely affected by import competition. SBA's Made in America announcement expanded the program to manufacturers more broadly.
SBA states that manufacturers across NAICS Sectors 31–33 (the full range of U.S. manufacturing) became eligible for the expanded ITL program starting May 1, 2026. Confirm with your lender whether any trade-related documentation still applies to your file.
The practical effect: when SBA guarantees 90% of a loan instead of 75%, the lender carries a smaller share of any loss if the loan defaults. The lender still underwrites the file, and the borrower still has to meet SBA and lender credit standards.
What the Program Covers
The Made in America Loan Guarantee supports a range of capital uses for qualifying manufacturers:
- Equipment upgrades and replacement: modernize production lines, reduce unit costs, improve throughput
- Facility expansion: build out or renovate manufacturing space to meet demand or national security requirements
- Supply chain diversification: shift sourcing away from foreign suppliers and build domestic production capacity
- Working capital: fund operations, materials, and production costs through the MARC program (Manufacturer's Access to Revolving Credit)
The MARC program, launched October 1, 2025, is a permanent addition to the SBA's 7(a) portfolio. It provides both revolving lines of credit and term loans up to $5 million specifically for manufacturers, designed to handle the extended payment cycles and large material purchases common in the sector.
Fee Relief for Manufacturers: FY2026 and FY2027
SBA announced that it waived loan fees for small manufacturers in fiscal year 2026, which ended September 30, 2026. That waiver has ended.
For fiscal year 2027, which covers loans approved from October 1, 2026, through September 30, 2027, SBA's fee notices continue relief for manufacturers in NAICS Sectors 31–33:
- 7(a) loans: the upfront guaranty fee is 0% for loans of $700,000 or less. 7(a) loans above $700,000 pay the standard FY2027 upfront fee: 3.5% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion above $1,000,000. (SBA Information Notice 5000-881797)
- 504 loans: the upfront guaranty fee and the annual service fee are both waived. (SBA Information Notice 5000-881796)
The same FY2027 relief also applies to listed food supply chain NAICS codes and to businesses located in rural areas. Fees are set by the loan's approval date, so confirm the schedule that applies with your lender.
Who Qualifies
Eligibility for the Made in America Loan Guarantee requires:
- NAICS Sectors 31–33: all manufacturing classifications, including durable goods (metal, wood, electronic), nondurable goods (food, textiles, chemicals), and advanced manufacturing
- SBA size standards: tangible net worth under $20 million and average post-tax income under $6.5 million
- U.S. ownership: as of March 1, 2026, SBA loans require 100% ownership by U.S. citizens or U.S. nationals; lawful permanent residents and other non-citizens can no longer hold any ownership stake
- Sound repayment ability: lenders will evaluate cash flow, DSCR, and business history under standard underwriting criteria
The citizenship ownership change is significant and recent. If your business has any non-citizen ownership structure, confirm eligibility with an SBA-approved lender before proceeding.
How It Compares to a Standard SBA 7(a) Loan
| Standard SBA 7(a) | Made in America ITL | |
|---|---|---|
| Federal guarantee | 75% | 90% |
| Upfront fee for NAICS 31–33 borrowers, FY2027 | 0% on loans of $700,000 or less | 0% on loans of $700,000 or less |
| Eligibility basis | Most for-profit small businesses | NAICS 31–33 manufacturers (from May 1, 2026) |
| Max loan amount | $5 million | Subject to the 7(a) program's $5 million limit |
| Eligible uses | Broad | Equipment, facilities, supply chain, working capital |
The higher guarantee does not change your interest rate directly. It lowers the share of a potential loss the lender would carry, which lenders weigh as part of their risk review. It does not change the credit, cash flow, or documentation standards a borrower must meet.
How to Prepare a Manufacturing SBA Application
Manufacturers considering any of the following are good candidates for the program:
- Equipment purchase or replacement
- Facility build-out or renovation
- Supply chain restructuring
- Working capital line for large contracts or material inventory
The application process through an SBA-approved lender typically takes 30 to 90 days depending on loan size and complexity. Build that timeline into your planning regardless of which fee structure applies when you file.
The SBA Made in America Loan Guarantee is a meaningful program for U.S. manufacturers. The FY2026 waiver ended on September 30, 2026, and the narrower FY2027 relief described above applies to loans approved through September 30, 2027. If you are planning a capital investment, contact us to confirm the current guarantee and fee terms before you apply.
If your business falls under NAICS 31–33 and you are considering a capital investment, speak with an SGF advisor to evaluate whether the ITL program fits your situation. You can also review our SBA financing overview for a full breakdown of available programs.
Explore the Program