Dive Brief:
- The U.S. Small Business Administration awarded $3.65 billion in government-backed 7(a) and 504 loans to the manufacturing sector in fiscal year 2025, according to agency data. That was up 16.7% compared with the previous year.
- The agency delivered 4,456 total loans valued at nearly $2.8 billion to manufacturing borrowers through its 7(a) programs for the 12 months that ended in September. It also distributed 538 total loans worth approximately $852 million during the period via its 504 program.
- The growth in lending activity happened as the SBA sought to make it easier for borrowers to access capital for payrolls, equipment purchases and more.
Dive Insight:
Under the Trump administration, a keystone of the SBA has been to support manufacturers in an effort to rebuild U.S. production and strengthen domestic supply chains. Last year, the agency took steps to reduce regulatory barriers and increase access to capital, including eliminating lender fees for manufacturers in fiscal year 2026.
In October, the agency created its first program exclusively for manufacturers, called the Manufacturer’s Access to Revolving Credit program, which can provide borrowers up to $5 million for working capital needs and be used in tandem with other SBA and commercial loans. In the first two months of the program, it approved $3.5 million in revolving lines of credits.
As companies navigated inflation and higher costs from tariffs last year, the agency also developed a free tool to help small businesses connect with U.S. manufacturers, producers and suppliers to accelerate onshoring. Additionally, it advanced a bill that would double SBA manufacturing loan limits to $10 million. The legislation passed the House in December and is awaiting further consideration in the Senate.
Beyond manufacturing, the SBA said it delivered record capital to small businesses in fiscal year 2025. The agency guaranteed 85,000 loans totaling $45 billion for the period, according to its 2025 annual report published Tuesday. Capital went to borrowers across industries, including construction, accommodation and food services, and professional, scientific and technical services.
