As part of the federal administration’s Made in America Manufacturing Initiative, the U.S. Small Business Administration has introduced temporary fee waivers that significantly reduce the cost of SBA 504 financing for eligible manufacturers. These incentives are designed to strengthen domestic production, improve supply chain resilience, and help U.S. manufacturers invest in long-term growth – all at a lower cost of capital.
For manufacturers planning facility expansions, major equipment purchases, or refinancing, this initiative creates one of the most favorable financing environments the SBA 504 program has offered in years.
What projects qualify
For qualifying manufacturing projects, the SBA is waiving both the upfront guaranty fee and the ongoing annual SBA service fee on SBA 504 loans approved during fiscal year 2026.
These fees are typically embedded in the overall cost of 504 financing. Eliminating them reduces the effective interest rate by approximately 30 basis points over the life of the loan.
What does that mean in real dollars? A manufacturer undertaking a $4 million project could save up to $135,000 over a 25-year loan term – capital that can stay in the business and be reinvested. These fee waivers apply to manufacturers classified under NAICS codes beginning with 31, 32, or 33, spanning a wide range of industries including food processing, fabricated metals, machinery and electronics manufacturing. The most recent 10-year manufacturing effective rate for April 2026 is at 5.32 percent.
Eligible uses include:
- Owner-occupied real estate purchases or construction;
- Heavy machinery and equipment acquisitions – Note that shipping, engineering and some installation costs can be financed in the 504 loan structure.
- Refinancing existing fixed asset-related debt into a SBA 504 loan structure.
Why this matters for manufacturers
By eliminating these fees, the SBA is directly lowering the long-term cost of financing for manufacturers, resulting in:
- Lower monthly payments and lifetime borrowing costs;
- Improved cash flow and capital allocation flexibility;
- Greater certainty through long-term, fixed-rate financing up to 25 years;
- A compelling incentive to modernize facilities, expand capacity, or reshore production.
The intent is clear – help manufacturers reinvest savings back into their businesses while keeping production and jobs here in the United States.
Act While the Opportunity Is Available
These manufacturing fee waivers are available for a limited window through September 30, 2026. For manufacturers considering an expansion, major equipment upgrade, or refinancing, now may be an especially advantageous time to evaluate the SBA 504 program. When combined with the program’s long-term, fixed-rate structure, the Made in America fee relief represents one of the most borrower-friendly environments manufacturers have seen in years.
If you’re planning capital improvements – or simply want to understand how this initiative fits into your long-term growth plans – connect with your lender or a WBD loan officer to explore your options.
