SBA Loans for Manufacturers

If you are a manufacturer and want to expand your business, an SBA loan could be what you need to take your operations to the next level.

A Small Business Administration (SBA) loan could help fund upgraded equipment, a new or expanded warehouse, an influx of staffing, and more.

Business Funding Group LLC (BFG) has decades of experience helping manufacturers secure SBA loans, assisting every step of the way.

If you want to learn more about SBA loans for manufacturers, reach out today for a free 15-minute call with one of our experts.

Why SBA Loans Are Ideal for Manufacturers

Six hundred thousand small manufacturers are responsible for 99 percent of production in the U.S., generating impressive revenue and employing more than five million workers. Clearly, we need these businesses to succeed.

Manufacturers often need significant capital to remain competitive in the market. SBA loans are a great option because they offer:

• Lower interest rates
• Longer repayment terms
• Reduced risk
• Flexible use of funds

SBA funding can help your business grow by allowing you to acquire the equipment and facilities you need, buy out a competitor, and fulfill large contracts.

Manufacturers may not be able to secure the funding they need through traditional loan routes, making it difficult for the business to thrive. SBA loans serve a great purpose as they are easier to get. Also, it is even easier to get an SBA loan if you are now or plan to export your products.

What Manufacturing Businesses Can Use Proceeds For

Manufacturing businesses can use SBA loan proceeds for a variety of business-related needs. Some examples of what manufacturers can purchase or how they can spend the money include:

• Managing your growing cash flow needs, such as payroll, materials, and overhead
• Purchasing machinery, vehicles, or tools
• Consolidating or paying off debt
• Expanding or purchasing new facilities
• Acquiring a competitor

If the funds are used to purchase real estate, the manufacturing business must occupy at least 51% of the property.

The SBA offers two loan programs: the 7(a) and the 504. You can choose which loan to pursue based on how much funding you need and what you need it for. We can help you identify which loan is best for you, as each carries different requirements and restrictions.

The 7(a) loan is the more popular SBA loan program as it offers more flexibility, making it a good choice for manufacturers who need funding for various purposes. The 504 loan program is a great option for manufacturers looking to purchase fixed assets like real estate and/or equipment.

Both programs have pros and cons. With the 7a loan, manufacturers can use the funds for a wide range of purposes and receive up to $5M in funding. The 504 loan limits the uses of the funds but allows for a high amount of funding, ranging from $150k to $20M+.

Manufacturers may need an influx of cash to pay for operational expenses, equipment, facility upkeep or expansion, product development, and debt or supply chain management. SBA loans put funding within reach.

Should I Apply for An SBA?

Securing an SBA loan is more accessible than ever. Small businesses that might not be able to get traditional funding are receiving funding from government-secured loans and, in turn, growing their businesses.

To be successful in obtaining an SBA loan, you must:

• Have a credit score of 700 or higher
• Demonstrate earnings or cash flow

Do not be overwhelmed by the options and complicated process. BFG makes the application process easy so you can confidently apply for an SBA loan and invest in your business. Interest rates are low, and the repayment period can be up to 30 years.

Grow Your Manufacturing Business With An SBA Loan

Our dedicated team at BFG offers expert guidance about SBA loans from application to closing. We work with numerous lenders and ensure your loan application is handled properly.

Call us today to discuss SBA loans for manufacturers! You can also use our SBA loan calculator to estimate your potential loan amount and explore financing options tailored to your business needs.

We can help you determine your eligibility, go over which SBA loan program might be right for you, and get started on your application.