Small manufacturers can currently borrow through the flagship federal loan program without paying the usual upfront fees because SBA waived warranty fees for small manufacturers in fiscal year 2026. Eligible 7(a) manufacturing loans up to $950,000 have a zero upfront guarantee fee, and the forgiveness runs through September 30.
If you are making a physical product, this deadline is the practical title. Loan approval isn’t instant, so timing matters as much as eligibility rules, and there’s about ten weeks left in the window. This is how economies really work.
What the fee waiver covers and what it skips
The waiver applies to the initial guarantee fee, which is the fee the SBA normally collects when it guarantees part of your loan. Borrowers generally pay it at closing or roll it into the amount financed.
The 504 program received parallel treatment. For 504 manufacturing loans, the initial fee and annual servicing fee are 0%, which is important for owners financing equipment or real estate rather than for working capital.
However, everything else remains the same. Interest still accrues, lenders still charge preparation and closing fees, and underwriting standards have not eased. Forgiveness reduces the cost of borrowing without changing your eligibility.
Read the savings on an actual loan amount
Guarantee fees vary depending on the loan amount, so the benefits are not uniform. On small loans, the waiver is a modest convenience, while on a loan near the $950,000 cap, it removes a significant five-figure cost at closing.
Think of it as money remaining in the business during the weakest month. The money you don’t hand over at closing is the money available for the first payroll cycle after the equipment arrives, which is usually when projections match reality.
| Program | Fee processing |
|---|---|
| 7(a) manufacturing loans up to $950,000 | Initial warranty fees reduced to zero |
| 504 manufacturing loans | Initial fee and annual service fee each 0% |
| Window | From October 1, 2025 to September 30, 2026 |
However, don’t let savings determine the decision. A cheaper loan is still a loan, and the same discipline applies here as when you buy a business with borrowed money.
Check if your NAICS code qualifies
Eligibility is through industry classification rather than self-description. The program targets manufacturers in NAICS 31, 32 and 33, so the code you are assigned determines access, regardless of how you describe the business.
Research yours before calling a lender. THE Census Bureau NAICS Reference allows you to confirm classification in minutes, and inconsistencies are common among founders who assemble or customize products.
Borderline cases deserve a conversation. Companies that manufacture and distribute products sometimes carry a wholesale code, even if production is done in-house, and correcting this classification is a legitimate step rather than a workaround.
The September deadline that shapes your calendar
Work backwards from September 30. SBA loans typically take several weeks from application to closing, and longer when environmental assessments or reviews are applied, so August applications are already tight.
Prepare your documents before approaching a lender. Two to three years of financial data, a current profit and loss statement, a debt schedule, and a clear use of funds will get you out of trouble faster than any relationship.
Ask yourself if debt is the right instrument. Some founders in this position are better served by comparing conditions with risk debt or delay purchase, particularly if demand is unproven.
Also plan for the tax side. Equipment purchases interact with depreciation choices, and founders considering a future exit need to understand how structure affects Capital gains tax QSBS processing along the way.
Common Questions About SBA Manufacturing Fees
Does the waiver apply to loans over $950,000? The zero upfront guarantee fee applies to eligible 7(a) manufacturing loans up to this amount. Larger loans follow the standard fee schedule, so ask your lender to model both.
Can I refinance an existing loan to take advantage of this? Sometimes refinancing comes with its own costs that can outweigh the fee savings. Run the full comparison rather than assuming the waiver is worth it.
What happens after September 30? Fee scales are set annually, so treatment may continue, change or expire. Nothing is guaranteed beyond the current fiscal year, which is precisely why the timeline deserves attention now.
Here is the simple version. If you’re manufacturing, confirm your NAICS code this week, gather your financial data next week, and let the lender tell you if the September window is realistic for your situation.
