SBA UPDATE: FEES WAIVED FOR MANUFACTURING COMPANIES
SBA UPDATE: FEES WAIVED FOR MANUFACTURING COMPANIES
Manufacturers, we have great news for you! The U.S. Small Business Administration has announced that in fiscal year 2026 beginning October 1st the SBA 504 upfront fee and annual service fees for manufacturers with NAICS Code 31-33 will be waived. This means that the upfront fee will be 2.15% and the ongoing fees paid by the borrower as part of their monthly payment will be reduced by approximately 21bp. As SBA Administrator Kelly Loeffler explained, “98% of U.S. manufacturers are small businesses – and by reducing loan fees, the SBA is eliminating barriers to capital so they can invest those dollars back into the mission of rebuilding America’s industrial base.”
Over the years, Bay Area Development has had the privilege of helping numerous manufacturing clients fund commercial real estate purchases and expansions, inventory acquisition, and the purchase or upgrade of specialized equipment. When you think of manufacturing, products like cars, technology, furniture, widgets and appliances probably come to mind. The SBA broadly defines a manufacturer as a business that transforms or assembles materials into an end product, and you might be surprised to know that breweries and wineries fall into that category. Then again, we wonder what’s better than assisting clients that “transform” hops into beer or grapes into wine?
In the South Bay, we delivered 504 funds so a brewery could purchase its formerly leased property, which houses a brewing facility, taproom, and bar. Owning the building and remaining in the existing location delivered job growth, preserved the client’s customer base, and locked in long-term occupancy costs.
An East Bay brewery used 504 funding to purchase equipment and property that brought all brewing activity under one roof. Opening the new space created additional jobs in the community and significantly increased the company’s efficiency.
A winery in Sonoma County worked with us to leverage the SBA 504’s refinancing program to lock in a lower rate on the mortgage of their nearly 50-acre property. This project reduced the owners’ overhead and allowed them to invest the savings back into the business.
Also in the Sonoma area, we helped a winery consolidate, moving the tasting room and the wine manufacturing spaces to a single location. Purchasing the building lowered the owner’s occupancy costs and operating from a single location offers a seamless experience for the business.
From wine and beer to clothing and electronics, small manufacturing businesses do more than create products – they create jobs and other opportunities in the communities where they operate. Click here to learn more about the 2026 fee waiver or contact our team. We would be happy to help you leverage this change for your manufacturing company’s advantage.
