SBA Fee Reductions for Manufacturers in Fiscal Year 2026
What Lenders & Brokers Need to Know
Effective October 1, 2025, the Small Business Administration (SBA) will reduce most upfront SBA 504 loan fees for small manufacturers. These updates are part of the federal ‘Made in America’ initiative to help create a unique opportunities for small business owners in the manufacturing industry to access capital.
Summary of SBA 504 Fee Changes for Manufacturers
Upfront Guaranty Fee Waived – manufacturers will pay 0% on the SBA’s upfront guaranty fee for 504 loans, including those used for refinancing.
Annual Servicing Fee Waived – the annual SBA servicing fee is also waived for borrowers that are manufacturers. This applies for the full term of the loan.
Eligible Businesses – manufacturing businesses with its primary NAICS Code in sectors 31, 32 and 33 are eligible for these fee reductions.
Effective Dates – These changes apply to loans approved between October 1, 2025, and September 30, 2026.
Why It Matters
Manufacturers often require significant capital to invest in equipment, facilities, and workforce. By eliminating certain SBA fees, these updates make it easier for manufacturers to access affordable financing and reinvest in their operations.
TMC Financing’s Perspective
We help borrowers confirm eligibility early in the process and work with lending partners to address any questions about industry classification or fee structure. Our proactive approach ensures smoother underwriting and faster approvals.
Check out our loan calculator to see an SBA 504 loan scenario.
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If you work with manufacturing clients, now is the time to act. These fee reductions can make a meaningful difference in their financing strategy.
Contact our SBA 504 loan experts today to learn how we can help you and your clients take full advantage of these changes.