SBA Cuts Costs for Manufacturers with 504 Loan Fee Waivers

The U.S. Small Business Administration (SBA) has announced fee relief for manufacturers using the SBA 504 loan program. Beginning October 1, 2025, manufacturers will no longer be required to pay the upfront guaranty fee or the annual service fee on 504 loans.

The SBA 504 program is one of the most affordable financing options for small businesses to purchase fixed assets such as real estate, large equipment, and renovations. The program offers long-term, fixed-rate financing with as little as 10% down. Typically, a project is structured so that 50% is financed by a bank, 40% is financed by the SBA through a Certified Development Company (CDC) like the Regional Development Company, and the borrower contributes the remaining 10%.

What Does the SBA Consider a Manufacturer?

This fee relief applies to businesses classified as manufacturers under NAICS codes 31, 32, and 33. These codes represent a wide variety of industries, from food and beverage production to fabricated metals, machinery, chemicals, and consumer goods. Examples include breweries, distilleries, coffee roasters, bakeries that manufacture products for wholesale, custom furniture makers, machine shops, plastics manufacturers, and many more.

For manufacturers, this initiative is a huge opportunity. By lowering costs, the SBA is allowing more capital to remain in the hands of business owners. That money can instead be used to hire additional staff, upgrade equipment, or invest in modernization.

Apply now to take advantage of the SBA 504 fee waiver for manufacturers. Contact the Regional Development Company today for more information and to get started on your application.