Key Messages
- The SBA is waiving the SBA manufacturing fee for both 7(a) and 504 loans.
- This offers a compelling opportunity for businesses in NAICS Sectors 31-33 and considerable cost savings for manufacturing businesses.
- CDC Small Business Finance is ready to share its expertise and support lenders and brokers with SBA manufacturing loans in this new landscape.
The Small Business Administration (SBA) has announced a significant change that will directly benefit manufacturing clients of lenders and brokers. For the first time, the SBA is introducing fee waivers on its flagship 7(a) and 504 loan programs specifically for manufacturers. These changes, effective October 1, 2025, are part of the White House’s “Made in America” initiative and offer a compelling opportunity for businesses in NAICS Sectors 31-33.
As an experienced SBA lender and partner, we want to ensure that lenders and brokers have the latest information to help their clients leverage these new financing benefits and grow their businesses.
Have a manufacturing deal and looking for a lending partner? Reach out to our loan officers today and we’ll help get it done.
How the SBA Has Changed 504 Loan Fees for Manufacturers
The changes to the 504 loan program provide comprehensive fee relief for manufacturers.
Upfront & Annual Fee Waivers
What’s New: For 504 loans to manufacturers, including those for refinancing, both the upfront SBA Guaranty Fee and the annual SBA Servicing Fee will be 0%.
What It Means: This is a powerful incentive for manufacturers looking to acquire or improve major fixed assets like real estate and machinery. Waiving both the upfront and annual fees means a manufacturer can finance long-term assets with no SBA-related guaranty fees for the entire life of the loan.
Example of How it Works for an SBA 504 Loan:
| Manufacturer | Non-Manufacturer | |
|---|---|---|
| Purchase price of building | $2,500,000 | $2,500,000 |
| Proposed 1st mortgage (bank lender) | $1,250,000 | $1,250,000 |
| Proposed debenture (CDC lender) | $1,000,000 | $1,000,000 |
| Proposed down payment | $250,000 | $250,000 |
| Up front savings from waiver of SBA Guaranty Fee | $5,000 | $0 |
| Estimated monthly payment savings over the life of the loan | $37,400 | $0 |
| Total savings | $42,000+ | $0 |
How the SBA Has Changed 7(a) Community Advantage Loan Fees for Manufacturers
The SBA has revised fees for 7(a) loans, including the Community Advantage program, making them more affordable than ever for eligible businesses.
Upfront SBA Guaranty Fee Waiver
What’s New: For 7(a) loans to manufacturers of $950,000 or less, the upfront SBA fee will be 0%, including for the Community Advantage program.
What It Means: This is a major change that eliminates a significant cost barrier for manufacturers seeking capital. This fee waiver applies across all existing 7(a) programs and allows businesses to keep more working capital on hand for operations and growth.
Example of How it Works for an SBA 7(a) Community Advantage Loan:
| Manufacturer | Non-Manufacturer | |
|---|---|---|
| Borrowed amount | $350,000 | $350,000 |
| Savings on upfront fee on guaranteed portion of loan (75%) | $7,875 | $0 |
Take Advantage of This 0% Fee with a Trusted Lender
The new fee waivers represent a historic commitment from the SBA to support the manufacturing sector. As a dedicated partner in small business lending, CDC Small Business Finance is here to help lenders and brokers navigate these changes and provide their manufacturing clients with the best possible financing solutions. Our team has the deep experience and expertise to structure and process 7(a) and 504 loans efficiently, ensuring that clients can take full advantage of these new savings. Don’t let these opportunities pass by.
Reach out to our loan experts today to discuss your client’s needs and how we can partner to get their next loan financed.
