SBA 504 Loan Program – Fee Waiver for Manufacturers (FY 2026)

SBA 504 Loan Program – Manufacturer Fee Waiver Initiative

Status: Active October 1, 2025 – September 30, 2026 (Temporary fee elimination)

Geographic Scope: United States (nationwide); administered by Statewide CDC for California, Nevada, and Arizona

Focus Areas: Small manufacturers in manufacturing industries (NAICS codes 31–33)

Program Description:
Temporary fee waiver initiative providing significant cost savings on SBA 504 loans for qualifying manufacturers. This is part of the SBA's broader Made in America Manufacturing Initiative.

Fee Waivers (FY 2026)

• 0% upfront guaranty fee (normally 0.50% SBA fee)
• 0% annual service fee for the life of the loan
• Estimated lifetime savings: $37,000 to $76,000, depending on project

Cost Savings Example (on $2,500,000 loan)

• One-time SBA fee waiver: $12,500 (0.50%)
• Interest rate savings: 0.209% for purchase deals; 0.2115% for refinance deals
• Interest rate savings over 25 years: approximately $60,000–$63,000
• Total estimated savings: nearly $76,000

Eligible Uses

• Purchase of owner-occupied real estate
• Building construction or improvement
• Equipment acquisition
• Facility modernization and expansion

Eligible Industries

NAICS codes 31–33 (Manufacturing industries):
• Durable goods manufacturers: metal, wood, electronic, etc.
• Nondurable goods manufacturers: food, textiles, chemicals, etc.
• Mechanical, physical, or chemical transformation of materials, substances, or components into new products

Eligibility Requirements

• Business must operate under NAICS codes 31–33 (manufacturing industries)
• Meet standard SBA size requirements: tangible net worth under $20 million and average post-tax income under $6.5 million
• 504 funds only for fixed assets such as real estate, construction, or long-term equipment
• You can find your NAICS code on your business tax returns

Important Notes

• Fee waiver is temporary through September 30, 2026
• After fiscal year closes, SBA will evaluate results to determine if savings could continue in future years
• Applies to both new loans and refinancing projects
• Freed-up cash flow can be reinvested into staffing, training, technology, or production improvements

Who Benefits

• Manufacturers: Significant cost savings and affordable long-term financing
• Lenders: Opportunity to attract new manufacturing clients with 0% SBA fees
• CDCs (Certified Development Companies): Increased demand for 504 loans
• Commercial Real Estate Brokers: Valuable closing advantage when helping clients purchase or refinance owner-occupied facilities

Contact: Statewide CDC at 1-800-982-9192