On March 31, 2026, the Small Business Administration announced the Made in America Loan Guarantee — a new program that raises the federal guarantee on manufacturing loans from 75% to 90%, while waiving all fees for qualifying manufacturers in FY 2026. Combined with the launch of the first-ever MARC revolving credit program, this is the most significant change to SBA manufacturing financing in years.
Here's what you need to know.
What Is the SBA Made in America Loan Guarantee?
The Made in America Loan Guarantee is an enhancement to the existing SBA 7(a) loan program, specifically targeting U.S. manufacturers. Standard 7(a) loans carry a 75% federal guarantee — meaning if a borrower defaults, the SBA covers up to 75% of the lender's loss. The Made in America Loan Guarantee raises that ceiling to 90% for eligible manufacturers.
The higher guarantee matters because it directly affects a lender's risk exposure. With 90% covered, banks and credit unions are more likely to approve manufacturing loans — and at lower interest rates — than they would for standard 7(a) applicants.
The program is administered through the ITL (Industry-Targeted Lending) structure within the existing 7(a) framework, so borrowers work through SBA-approved lenders as they would for any 7(a) loan.
Who Qualifies?
The Made in America Loan Guarantee is open to small manufacturers across all industries — not limited to specific sectors like defense or semiconductors. Eligibility criteria follow standard SBA 7(a) requirements:
- U.S.-based business that qualifies as a "small business" under SBA size standards for your NAICS code
- Primarily engaged in manufacturing (NAICS 31–33)
- For-profit business
- Unable to obtain equivalent financing on reasonable terms elsewhere (standard SBA "credit elsewhere" test)
- Good standing — no federal debarment, no delinquent federal taxes
Construction companies with manufacturing components — such as firms that fabricate structural steel, precast concrete, or modular building systems — may qualify if the manufacturing activity is a primary business function. Franchise operators with manufacturing operations (custom food production, branded goods assembly) can similarly qualify if the manufacturing meets the threshold.
How It Compares to Standard SBA 7(a) Loans
| Feature | Standard 7(a) | Made in America Loan Guarantee |
|---|---|---|
| Federal guarantee | Up to 75% | Up to 90% |
| Loan fees (FY 2026) | Standard fee schedule | Waived for manufacturers |
| Eligible borrowers | All small businesses | Small manufacturers (NAICS 31–33) |
| Max loan amount | $5 million | $5 million (same 7(a) ceiling) |
| Use of funds | Working capital, equipment, real estate | Working capital, equipment, real estate |
| Program structure | Standard 7(a) | ITL (Industry-Targeted Lending) track |
The fee waiver is meaningful. Standard 7(a) loans over $150,000 carry guaranty fees of 2–3.5% of the guaranteed portion. On a $1 million loan with 90% guarantee, that's a $9,000 savings at the 1% upfront fee tier — or up to $31,500 at the 3.5% tier for longer-term loans.
FY 2026 Fee Waivers for Manufacturers
The SBA has waived guaranty fees for all Made in America Loan Guarantee loans originated in FY 2026 (through September 30, 2026). This applies to:
- Upfront guaranty fees (normally 2–3.5% of guaranteed portion for loans over $150,000)
- Annual service fees where applicable
The fee waiver is scheduled to apply through FY 2026. Lenders are required to pass fee savings directly to borrowers — not retain them. If a lender is quoting you standard 7(a) fees on a manufacturing loan, ask specifically about the Made in America Loan Guarantee classification.
MARC: The First Revolving Credit Program for Manufacturers
Alongside the loan guarantee expansion, the SBA launched MARC — the Manufacturing Access to Revolving Credit program — described as the first revolving credit program specifically designed for U.S. manufacturers.
MARC provides a revolving credit line (not a term loan), allowing manufacturers to draw, repay, and redraw funds as needed. This structure is particularly useful for:
- Managing raw material costs that fluctuate with commodity prices or tariffs
- Bridging payment gaps between purchase order and customer payment
- Seasonal production scaling
First approvals are underway: Four manufacturers received the initial MARC approvals, totaling $3.5 million in revolving credit commitments. The SBA has indicated it expects to scale approvals through Q2–Q3 2026 as lender training completes.
How Construction and Franchise Operators Can Use These Programs
Construction companies that manufacture components — structural steel, precast concrete, HVAC modules, custom millwork — can use the Made in America Loan Guarantee to finance:
- Equipment for the fabrication facility
- Working capital to cover materials while waiting on project payment
- Facility expansion tied to manufacturing operations
The key qualifier: the manufacturing operation must be a legitimate primary business function, not incidental. A general contractor that occasionally prefabricates minor components likely doesn't qualify; a firm where 40%+ of revenue comes from manufactured-component sales has a stronger case.
Franchise operators with manufacturing components (a franchise that produces its own branded food products, for example, or a service franchise with a proprietary parts fabrication operation) can use the same programs, provided the manufacturing activity meets SBA's definition under NAICS 31–33.
Applying: What to Expect
The Made in America Loan Guarantee follows the standard SBA 7(a) process through an approved lender. Steps:
- Find an SBA Preferred Lender or Express Lender — these have streamlined approval authority. Search the SBA Lender Match tool.
- Request the ITL classification — explicitly ask your lender to process your application under the Made in America Loan Guarantee / ITL structure to capture the 90% guarantee and fee waiver.
- Prepare standard 7(a) documentation: business financials (2–3 years), personal financial statement, business plan, equipment list or use-of-funds detail.
- Expect a 2–6 week underwriting timeline for standard applications; Express loans (up to $500,000) can close in as little as 36 hours.
Bottom Line
The 90% guarantee and FY 2026 fee waivers make the Made in America Loan Guarantee the most favorable SBA manufacturing loan structure currently available. If you're a small manufacturer — or a construction firm or franchise operator with qualifying manufacturing operations — and you're looking at equipment financing, working capital, or facility expansion, this is the program to ask your lender about before September 30, 2026.
For startup cost benchmarks by industry and state, see our startup costs guide. If tariff exposure is also a factor in your project planning, use our Tariff Calculator to model the impact of current Section 232 rates on your material costs. For a direct comparison of SBA 7(a) vs 504 loan structures, see our SBA 7(a) vs 504 comparison.