FY2026 SBA Manufacturing Loan Fee Waiver Ends September 30: What Changes October 1
SBA’s FY2026 manufacturing fee schedule ends September 30, 2026. Qualifying manufacturers can receive a 0% upfront fee on certain 7(a) loans up to $950,000 and waived 504 upfront and annual service fees. FY2027 keeps manufacturing relief—but changes the 7(a) threshold.
If you're financing equipment, expansion or an acquisition for a manufacturing business, September may be worth more than another month on the calendar.
For FY2026, qualifying small manufacturers in NAICS sectors 31–33 can receive a 0% upfront guaranty fee on qualifying SBA 7(a) loans of $950,000 or less.
Qualifying SBA 504 manufacturing loans receive a 0% upfront guaranty fee and 0% annual service fee. The FY2026 schedule applies to loans approved through September 30, 2026.
There is an important catch: manufacturing fee relief does not simply disappear on October 1. FY2027 changes the rules, particularly for 7(a) loans.
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Quick Answer: When Does the SBA Manufacturing Fee Waiver End?
The FY2026 SBA manufacturing fee schedule ends September 30, 2026. For qualifying manufacturers, FY2026 provides a 0% upfront fee on eligible 7(a) loans up to $950,000 and waives both the upfront guaranty fee and annual service fee on qualifying 504 loans. The applicable SBA notices use the loan approval date, not the closing date, to determine which fiscal-year fee schedule applies.
Beginning October 1, 2026, the FY2027 schedules take effect. Under the new 7(a) schedule, the special 0% upfront fee continues for qualifying manufacturers—but only on loans of $700,000 or less. Manufacturing 504 loans continue to receive waived upfront and annual service fees in FY2027.
That distinction matters.
A manufacturer considering a 7(a) request between $700,001 and $950,000 has a materially different fee threshold depending on when the loan is approved.
What SBA Manufacturing Fees Are Waived Through September 30?
Here is the FY2026 manufacturing fee treatment at a glance:
Program | FY2026 Manufacturing Fee Relief | Key Limit | FY2026 Timing |
|---|---|---|---|
SBA 7(a) | 0% upfront guaranty fee | Qualifying manufacturing loans of $950,000 or less | Loan approved Oct. 1, 2025–Sept. 30, 2026 |
SBA 504 | 0% upfront guaranty fee and 0% annual service fee | Qualifying manufacturing loans | Loan approved Oct. 1, 2025–Sept. 30, 2026 |
The FY2026 7(a) notice specifically applies the manufacturing waiver to businesses classified within NAICS sectors 31–33 and loans of $950,000 or less. It also states that this particular manufacturing waiver does not apply to MARC loans. Other specialized 7(a) products can have their own fee schedules.
For 504 manufacturing loans, the SBA waived both the upfront guaranty fee and annual service fee for qualifying NAICS 31–33 manufacturers during FY2026, including eligible 504 debt-refinance transactions with or without expansion.
What does “upfront fee” mean?
For 7(a), the upfront guaranty fee is tied to SBA's guaranty of the loan and normally varies based on factors such as loan size and maturity. The FY2026 manufacturing provision reduces that upfront fee to 0% for qualifying loans at or below the $950,000 threshold.
Do not confuse that with the FY2026 7(a) annual service fee, which SBA charges to the lender based on the guaranteed outstanding balance. The FY2026 notice states that lenders may not pass that annual service fee on to the borrower.
Which Manufacturers Qualify for the Fee Relief?
The special manufacturing treatment is aimed at eligible small manufacturers classified within NAICS sectors 31–33, the North American Industry Classification System categories covering manufacturing.
That does not mean every company that makes, assembles or fabricates something automatically qualifies.
There are two separate questions:
Does your business fall within an eligible manufacturing NAICS classification?
Does the business and transaction otherwise qualify for the SBA loan program?
SBA size standards vary by specific NAICS code, so the fact that a company is in sectors 31–33 does not by itself establish that it qualifies as a “small business.”
For 7(a), the business must also meet the program's normal eligibility and underwriting requirements, including being an eligible for-profit U.S. business, satisfying applicable SBA size standards, demonstrating creditworthiness and showing a reasonable ability to repay.
The fee waiver lowers an SBA program fee. It does not waive underwriting, guarantee approval or make an otherwise ineligible borrower eligible.
SBA 7(a) vs. 504 for Manufacturing Businesses
Both programs can be useful to manufacturers, but they solve different problems.
SBA 7(a) | SBA 504 | |
|---|---|---|
Best For | Flexible business financing, acquisitions, working capital, equipment, real estate and mixed-purpose projects | Owner-occupied real estate, construction, major renovations and long-life machinery/equipment |
Working Capital | Yes, when eligible | No |
Business Acquisition | Common eligible use | Not designed to finance general business-acquisition purchase price |
Equipment | Yes | Yes, particularly qualifying long-life equipment |
Real Estate | Yes | Core use case |
Not For | Businesses unable to meet SBA eligibility/repayment requirements or situations requiring extremely fast capital | Inventory, general working capital or projects without qualifying fixed assets |
SBA describes 7(a) as its primary business loan program and permits proceeds for purposes including real estate, working capital, machinery and equipment, refinancing eligible debt and changes of ownership.
That flexibility makes 7(a) particularly useful when a manufacturer is financing multiple pieces of a project—for example, acquiring a business while also funding inventory, working capital and equipment.
The 504 program is more specialized. It provides long-term, fixed-rate financing for major fixed assets such as owner-occupied real estate and qualifying long-life machinery and equipment. SBA specifically states that 504 proceeds cannot be used for working capital or inventory.
Practical examples
A manufacturer buying a new CNC machine and needing additional payroll and materials could find 7(a) more flexible because working capital can be part of an eligible project.
A manufacturer purchasing a $3 million owner-occupied production facility may find 504 structurally attractive because the program is built around long-term fixed assets.
A buyer acquiring an existing manufacturing company may use 7(a) because changes of ownership are an eligible use of proceeds. The exact structure still depends on the purchase price allocation, borrower profile and lender underwriting.
What Happens After September 30, 2026?
This is where the current SBA guidance gets more interesting than the headline.
SBA 7(a): the manufacturing threshold drops
For FY2027, SBA's 7(a) fee schedule applies to loans approved from October 1, 2026 through September 30, 2027.
Qualifying manufacturing businesses in NAICS sectors 31–33 can still receive a 0% upfront fee, but the maximum gross loan amount receiving that special treatment falls from $950,000 in FY2026 to $700,000 in FY2027.
So the September 30 deadline is especially relevant for a manufacturer seeking a qualifying 7(a) loan between $700,001 and $950,000.
A qualifying $900,000 manufacturing 7(a) loan approved under the FY2026 schedule falls within the special 0% upfront-fee threshold. A $900,000 loan approved under the FY2027 schedule is above the new $700,000 manufacturing threshold and would generally fall under the applicable FY2027 fee schedule unless another program-specific exception applies.
That does not mean a business should accept a bad loan just to beat a deadline. Financing structure, rate, amortization, collateral requirements, lender fit and total project economics still matter more than chasing one fee.
SBA 504: manufacturing relief continues
The FY2027 504 notice continues the manufacturing incentive.
For eligible manufacturers in NAICS sectors 31–33, SBA again waives the upfront guaranty fee and annual service fee for loans approved during FY2027.
So saying “the SBA 504 manufacturing fee waiver ends September 30” would be inaccurate based on current guidance.
What ends September 30 is the FY2026 schedule.
Does the September 30 Deadline Mean Your Loan Must Close by Then?
No hard September 30 closing requirement appears in the FY2026 fee notices.
Both the FY2026 7(a) and 504 notices state that their fee schedules apply to loans approved during the period ending September 30, 2026. They do not say that every qualifying loan must also close or fund by September 30 to receive FY2026 fee treatment.
That difference matters because SBA financing involves several stages:
Application → lender underwriting → SBA approval → closing → fundingFor fee-schedule purposes, the official notices focus on approval timing.
However, that is not a reason to submit a file on September 29 and assume everything will work.
Banks, non-bank SBA lenders and Certified Development Companies may have their own internal submission deadlines, underwriting timelines and document requirements. A lender may need a substantially complete file well before September 30 to obtain an SBA approval before the fiscal year changes.
Ask your lender directly:
Which SBA approval date will determine the applicable fee schedule?
What is your internal cutoff for obtaining an approval before September 30?
What documents are still required to make this file approval-ready?
That is much more useful than assuming “closing by September 30” is the rule.
How Manufacturers Can Prepare Before the Deadline
If the FY2026 7(a) threshold could materially affect your project, the move is not to panic.
It is to make your file easier to underwrite.
Manufacturing SBA Financing Checklist
✅ Define the financing purpose. Equipment, real estate, acquisition, expansion, working capital—or a combination?
✅ Determine the requested amount. This is particularly important if a 7(a) request could fall between $700,001 and $950,000.
✅ Prepare recent financial statements.
Have an up-to-date profit and loss statement and balance sheet available.
✅ Gather business and personal tax returns.
Your lender will tell you exactly which years are required.
✅ Update your business debt schedule.
Include current balances, monthly payments and lenders.
✅ Organize ownership information.
Be ready to document owners, percentages and relevant background information.
✅ Collect equipment quotes.
If machinery is part of the project, provide vendor quotes or purchase details.
✅ Collect real-estate information.
Purchase contracts, construction budgets, property details and related documentation may be required.
✅ Prepare acquisition documents when applicable.
Purchase agreement, seller information and historical financials can be critical.
✅ Get lender pre-screening early.
A fast “yes, this structure makes sense” or “no, use a different structure” is more valuable than losing a week preparing the wrong loan.
A complete file cannot guarantee approval, but an incomplete file can certainly slow one down.
Is SBA Financing the Best Option for Your Manufacturing Business?
Not always.
SBA financing can be attractive when a manufacturer wants longer repayment terms, is financing a business acquisition, needs a mix of working capital and fixed assets, or is purchasing major equipment or owner-occupied real estate.
But the cheapest-looking structure on paper is not automatically the right operational decision.
Alternatives worth comparing
🚜 Equipment financing or leasing: Useful when the project is primarily machinery and the equipment itself can support the financing structure.
🏘️ Conventional commercial real-estate financing: Established businesses with strong financials and sufficient equity may have bank options outside 504.
💳 Business lines of credit or working-capital financing: Better suited to recurring cash-flow gaps, inventory cycles, payroll or materials than 504.
📑 Accounts-receivable or invoice financing: Can make sense for manufacturers carrying large B2B receivables while waiting 30, 60 or 90 days for customers to pay.
🛒 Seller financing: Can be an important component of manufacturing-business acquisitions, sometimes alongside senior acquisition financing.
💵 Short-term or alternative business financing: Potentially useful when speed is more important than getting SBA-like terms—but businesses should compare the total cost and repayment structure carefully.
The goal is not “get an SBA loan.”
The goal is to finance the project with a structure that fits how the business actually earns and uses cash.
Frequently Asked Questions
When does the SBA manufacturing loan fee waiver end?
The FY2026 fee schedule ends September 30, 2026. FY2027 fee schedules apply to qualifying SBA loans approved beginning October 1, 2026.
Manufacturing fee relief continues in FY2027, but the 7(a) zero-upfront-fee threshold changes.
Which manufacturers qualify for SBA manufacturing fee relief?
The manufacturing provisions apply to eligible small businesses classified within NAICS sectors 31–33. Businesses must still satisfy the applicable SBA size standard, program eligibility requirements and lender underwriting.
Are all SBA loan fees waived for manufacturers?
No.
Under FY2026, qualifying manufacturing 7(a) loans of $950,000 or less receive a 0% upfront guaranty fee. The 504 manufacturing incentive waives both the upfront guaranty fee and annual service fee.
Program-specific exclusions and separate fee schedules can apply.
Does the FY2026 7(a) manufacturing waiver apply above $950,000?
No. The special FY2026 0% upfront fee for manufacturers applies to qualifying 7(a) loans of $950,000 or less. Loans above that amount are outside this specific manufacturing waiver and are subject to the applicable 7(a) fee rules.
What happens to the SBA 7(a) manufacturing waiver on October 1, 2026?
It does not disappear. Under the FY2027 schedule, qualifying manufacturing 7(a) loans can still receive a 0% upfront fee, but the maximum loan amount for that treatment falls to $700,000.
Are SBA 504 manufacturing fees still waived after September 30?
Yes. Under SBA's current FY2027 504 fee notice, eligible manufacturers in NAICS sectors 31–33 continue to receive a waived upfront guaranty fee and annual service fee for qualifying 504 loans.
Does an SBA manufacturing loan have to close by September 30?
The FY2026 SBA fee notices use the approval date, not the closing date, to determine the applicable fiscal-year fee schedule. Borrowers should still confirm lender-specific processing and submission deadlines because an SBA approval may require substantial lead time.
Can an SBA 504 loan be used for manufacturing working capital?
No. SBA states that 504 proceeds cannot be used for working capital or inventory. The program is designed primarily for qualifying fixed assets such as commercial real estate and long-life machinery and equipment.
Can an SBA 7(a) loan finance the purchase of a manufacturing business?
Potentially, yes. Changes of ownership are an eligible 7(a) use of proceeds. The borrower, business, transaction and repayment structure must still meet SBA and lender requirements.
Before September 30: Focus on Approval Readiness, Not Manufactured Urgency
The real deadline is straightforward.
The FY2026 SBA fee schedule applies through September 30, 2026, and the official notices tie that schedule to the date the SBA loan is approved.
For manufacturers seeking a qualifying 7(a) loan between $700,001 and $950,000, the change on October 1 is especially relevant because FY2027 lowers the manufacturing zero-upfront-fee threshold to $700,000.
For qualifying 504 manufacturing projects, the current FY2027 guidance continues the manufacturing fee waiver.
So do not rush into financing simply because a calendar page is about to turn.
But if you are already planning an equipment purchase, acquisition, expansion or real-estate project, there is little reason to leave the financing analysis until September 29.
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