The U.S. Small Business Administration (SBA) has unveiled a new financing option tailored for small manufacturers: the 7(a) Manufacturer’s Access to Revolving Credit (MARC) program. Introduced during the July 15th 7(a) Connect Quarterly Update, MARC loans are designed to provide flexible, revolving credit to businesses in NAICS sectors 31, 32, and 33. Lenders can begin submitting MARC applications to SBA on October 1, 2025.
What Is MARC?
MARC loans blend features of Standard 7(a) term loans and SBA Express revolving loans, offering a unique hybrid solution. Unlike CAPLines or asset-based loans, MARC loans are underwritten like Standard 7(a) loans and include annual financial reviews similar to Express.
Key Program Highlights
- Loan Type: Term or revolving line of credit (RLOC)
- Maximum Loan Amount: $5 million
- Guaranty Percentage: Up to 85% for loans ≤ $150,000; 75% for loans > $150,000
- Maturity: Up to 10 years for term loans; up to 20 years for revolving loans (10 years revolving with 10-year term-out)
- Underwriting: Actual or projection-based debt service coverage ratio ≥ 1:1
- Collateral: Lien on all business assets, with exceptions for trading assets on term loans and vehicles with an existing lien or value of $20,000 or less
- Fees: In addition to Standard 7(a) program fees, up to 50 basis point fee allowed annually, based on outstanding balance at review. Lines that are asset-based allow up to 2% of outstanding balance annually (one or the other, both fees are not allowed).
Eligible Uses
- Short-term working capital
- Refinance of existing working capital debt
- Borrowers can draw on MARC line to make loan payments due (including 7(a) MARC loan payments)
Ineligible Uses
- Refinance of non-working capital debt
- Changes of ownership
- Delinquent withholding taxes
- Floor plan financing
- Paying a creditor in a position to sustain a loss
Post-Closing Requirements
Lenders must conduct annual reviews starting no later than two years after the first disbursement. These reviews assess financial health, collateral sufficiency, and compliance with DSCR requirements. If criteria are not met, the loan must convert to a fully amortizing term loan for no more than 10 years.
Servicing & Liquidation
Lenders must follow SOP 50 57 and the Servicing and Liquidation Actions 7(a) Lender Matrix. Options include extending loan maturity, deferring payments, and converting revolving loans to term loans if necessary.
Complete guidance on the program is provided in SBA Procedural Notice 5000-870260 and in a new appendix 13 to SOP 50 10 8 7(a) Manufacturers' Access to Revolving Credit (MARC) | U.S. Small Business Administration.
