SBA Just Launched a 90% Loan Guarantee for Manufacturers. Here's What That Means If You're Buying One

If you're buying a manufacturing business, the SBA just made the deal a lot easier to get done. Starting May 1st, manufacturers in NAICS###-###-#### and food supply chain businesses qualify for the International Trade Loan program under a new "Made in America" expansion. The guarantee goes from 75% on a standard 7(a) to 90%. Loan fees for manufacturers are also waived for FY2026. The part that matters for this group: acquisitions are an eligible use. The SBA specifically calls out "expand operations and capacity through strategic acquisitions." So if you're buying a manufacturer, you can potentially structure this as an ITL instead of a standard 7(a). Going from 75% to 90% guarantee changes the conversation with lenders. They're holding 10% of the risk instead of 25%. That means better rates, more flexible deal structures, and lenders willing to get a deal done even when the DSCR (Debt Service Coverage Ratio) is on the tighter side. One thing to know: the ITL is a subtype of the 7(a). Historically you had to show you're either growing into export markets or getting hurt by import competition. This expansion opens it up to manufacturers more broadly, but it's still new. Worth talking to your lender about how they're reading the eligibility for acquisition deals. Overall, this means that: 7(a) loans (including ITL): Fees waived only on manufacturing loans up to $950,000. Above that, standard fees apply. 504 loans: Fees waived on all manufacturing loan amounts - no cap. So if you're doing a $2M acquisition through the ITL, you're still paying the guaranty fee. The waiver only covers the smaller deals on the 7(a) side. Link to the full article: https://www.sba.gov/article/2026/03/31/sba-announces-new-made-america-loan-guarantee-restore-manufacturing-dominance