Manufacturers may be eligible for lower SBA 504 interest rates!
Effective October 1, 2025, la Small Business Administration (SBA) significantly reduced 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.
Eligible manufacturers will receive .5% reduction on upfront loan fees and the interest rate will be approximately 20 basis points lower than the standard rate.
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. These changes present a valuable opportunity to reduce borrowing costs and expand access to capital for small businesses.
Summary of SBA 504 Fee Changes for Manufacturers
- Upfront guaranty fee: Waived This means Manufacturers only pay 2.15% on the bridge loan vs the standard 2.65%
- Annual service fee: Waived This means Manufacturers get a rate that is almost a quarter point lower than other industries
- Eligible Businesses – manufacturing businesses with its primary NAICS Code in sectors 31, 32 and 33 are eligible for these fee reductions.
For all other 504 loans (excluding 504 Debt Refinance Without Expansion):
- Upfront guaranty fee: 0.50% (up from 0% in FY 2025)
- Annual service fee: 0.209% of the outstanding balance (down from 0.331% in FY 2025)
Effective Dates – These changes apply to loans aprobado between October 1, 2025, and September 30, 2026.
TMC Financing’s Perspective
We help borrowers confirm SBA 504 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.
Contáctenos
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 Expertos en préstamos SBA 504 today to learn how we can help you and your clients take full advantage of these changes.