SBA Announces Loan Program for Small Manufacturers

The U.S. Small Business Administration is making an effort to better support small manufacturers across the country.

The agency announced it updated its International Trade Loan Program to help manufacturers expand facilities, hire workers, and increase production.

Under the new Made in America loan guarantee, the SBA will now guarantee 90% of the ITL loan compared to the standard 75% guarantee for the agency’s flagship 7(a) loan program. 

Agency officials said the expanded guarantee will give lenders greater confidence to support domestic manufacturing.

Supporting Manufacturing

“Small businesses make up 98% of all manufacturers in America, and as I’ve traveled across the country meeting with industry leaders, the demand for additional capital to expand and hire is evident,” SBA Administrator Kelly Loeffler said.

“This expanded support will give lenders greater confidence to deploy capital into domestic manufacturing, driving investments in machinery, facilities, and production capacity.”

Manufacturers in NAICS Sectors 31-33 will be eligible for the expanded ITL Program.

Beginning May 1, eligible manufacturers can use the funds to:

• Upgrade or replace equipment
• Modernize facilities and production lines
• Diversify supply chains and bring production to the U.S
• Build more resilient inventory positions
• Expand operations and capacity

Lenders and small businesses interested in the updated program can contact SBA’s national team of finance managers.