Boost Your Shop with These SBA Loan Options
Your Blueprint to SBA Loan Approval
SBA Reports 74% Spike in Manufacturing Loans
Small manufacturers across the United States are experiencing a financing boom under the Trump Administration, with the U.S. Small Business Administration (SBA) reporting a 74% increase in 7(a) loan approvals during the first 90 days of 2025 compared to the same period under the Biden Administration. This dramatic rise reflects renewed national focus on domestic manufacturing, job creation, and small business growth.
According to the SBA, more than 1,120 manufacturing businesses have received over $677 million in 7(a) loans since January 20, 2025—up from less than 650 loans totaling $497 million in 2021.
What’s Driving the Growth in SBA Loans?
The rise in SBA manufacturing loans is attributed to Trump-era policies like tax cuts and deregulation, which the SBA says have boosted domestic manufacturing. In January 2025, the sector added 10,000 jobs after losses in 2024. To meet rising demand, the SBA launched the "Made in America Manufacturing Initiative" to cut red tape, expand financing, and support workforce development.
How to Leverage SBA Loans for Your Business
If you're a small manufacturer looking to expand your production, purchase new equipment, or relocate to a larger facility, now is the time to act. Start by:
- Reviewing your eligibility for a 7(a) or 504 loan
- Using the SBA Lender Match to find a suitable lender
- Preparing a business plan, financials, and relevant documentation
- Working closely with a lender or CDC to customize your financing
Understanding the SBA's Key Loan Programs: 7(a) and 504
7(a) Loan Program – Versatile and Popular
Eligibility:
To qualify for a 7(a) loan your business must:
- Operate for profit in the U.S.
- Be classified as a small business under SBA standards
- Be creditworthy and able to repay the loan
- Not be able to obtain similar credit elsewhere on reasonable terms
Use Cases:
7(a) loans are versatile and can be used for:
- Equipment and machinery purchases
- Real estate acquisition or renovation
- Working capital or revolving credit lines
- Refinancing existing debt
- Business expansion and ownership changes
How to Apply:
- Use the SBA Lender Match tool to find a lender
- Apply directly through the lender
- Work with your lender to determine eligibility and complete documentation
SBA 504 Loan Program – Built for Long-Term Growth
Eligibility:
To qualify for a 504 loan, your business must:
- Operate as a for-profit business in the U.S.
- Have a tangible net worth under $20 million
- Have an average net income under $6.5 million for the past two years
- Meet general SBA size and character standards
Use Cases:
504 loans are ideal for major, long-term investments such as:
- Purchasing land, buildings, or heavy equipment
- Constructing or upgrading facilities
- Modernizing infrastructure (e.g., utilities, parking, landscaping)
- Refinancing qualified long-term debt
How to Apply:
- Contact a Certified Development Company (CDC) in your area
- The CDC will guide you through the process and SBA requirements
- Loans are issued in partnership with private lenders and the SBA
photo credit:
iStock.com/Brian Koellish