SBA Fee Waiver Explained: What It Means for Manufacturers and Lending Partners

Effective October 1, 2025, the SBA is making it easier, and less expensive, for manufacturers to access capital by waiving fees on both the 7(a) and 504 loan programs for businesses in NAICS Sectors 31–33.

That’s right—zero upfront fees, zero annual servicing fees (for 504s), and zero excuses for not helping your manufacturing clients seize this opportunity.

What This Means for SBA 504 Loans

For manufacturers, both the upfront SBA guaranty fee and the annual servicing fee drop to 0%.

Why it matters: Manufacturers can finance real estate, heavy equipment, and other fixed assets with long-term, fixed-rate funding, without paying a dime in SBA fees over the life of the loan. That translates to real savings and stronger deals.

Example:

  • $2,500,000 property purchase

  • SBA guaranty fee savings: $5,000

  • Estimated lifetime payment savings: $37,400

  • Total savings: $42,000+

What This Means for SBA 7(a) Loans

On the 7(a) side, manufacturers borrowing $950,000 or less also get a break.

  • Upfront guaranty fee: 0%

  • Applies to all 7(a) programs under the manufacturing umbrella.

Example:

  • $350,000 loan

    Waived fee savings: $9,671.86

That’s almost $10K staying with the business! Money that can go toward payroll, materials, or growth instead of fees.

Why This Matters

This fee waiver is a game-changer for manufacturing deals. Whether it’s a six-figure equipment purchase or a multi-million-dollar 504 real estate project, these fee waivers make SBA financing one of the most affordable tools on the market. 

For borrowers, lower costs make loans more attractive and easier to close, while giving borrowers stronger cash flow to support repayment.

For lenders, those reduced costs can encourage manufacturers to take on larger projects, leading to bigger loan volumes, stronger client relationships, and a clear competitive edge in the market.

Have a manufacturing project you’d like to discuss? Our team is ready to help you structure, process, and close these 7(a) and 504 loans quickly so your clients can get the capital they need without the added costs. Reach out to our Client Relations Team to chat about your next project.

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