Manufacturing financing.

Manufacturers get some of the strongest SBA financing treatment of any industry — 25-year real estate amortization, capital-intensive equipment financing, and SBA 504 owner-occupied CRE. But most banks don't know how to underwrite the specific working-capital dynamics of manufacturing. That's where deals die.

Scenarios I work through in this industry

Manufacturing acquisition

Buying an existing manufacturing business. SBA 7(a) for the business acquisition + equipment; SBA 504 wrap for the real estate if included and 51%+ owner-occupancy.

Equipment financing

CNC machines, injection molders, packaging lines, robotic cells. SBA 7(a) equipment or specialty equipment finance up to useful life (typically 7-10 years).

Owner-occupied CRE / expansion

Buying or expanding the manufacturing building. SBA 504 typically best structure — up to 90% LTV combined (bank 50% + CDC 40% + borrower 10%), 25-year fixed on the CDC portion.

Working capital lines

Bank-issued working capital lines to fund the working capital cycle (raw materials → WIP → finished goods → AR → cash). Requires manufacturing-literate bank.

Refinance & consolidation

Rolling multiple equipment loans or bank facilities into a single SBA 7(a) or conventional facility to lower blended rate and extend amortization.

What I actually bring to your deal

SBA 504 is the sleeper program for manufacturers buying their own building — long-term fixed rates on the CDC portion, 90% LTV, and specifically designed for owner-occupied CRE. Most bankers default-quote SBA 7(a) because that's what they know; a broker who understands the difference can save you meaningful cost over the loan life. On the working capital side, manufacturing-literate banks understand that a growing manufacturer needs an expanding working capital line — many banks don't, and cap you at a level that starves growth.

Common questions

Should I use SBA 7(a) or SBA 504 for my manufacturing building?

SBA 504 is generally better for pure real estate purchases with 51%+ owner-occupancy — longer fixed-rate on the CDC (second-mortgage) portion, lower down payment, structured for owner-occupied CRE. SBA 7(a) is better if you need to wrap real estate + equipment + working capital + business acquisition into a single transaction, or if you don't want the SBA 504 CDC processing complexity.

What equipment can be financed with SBA 7(a)?

Any equipment with a useful economic life over one year and used in the manufacturing business — CNC, molders, presses, robotic systems, material handling, packaging lines. SBA 7(a) equipment amortization is typically limited to the useful life of the equipment (5-10 years for most manufacturing equipment).

Do manufacturers qualify for the SBA 7(a) 25-year amortization?

Yes — the 25-year amortization on SBA 7(a) applies to the real estate portion of any loan. If you're buying a manufacturing business + building + equipment, the loan is amortized on a weighted-average of 25 years for real estate and 10 years for equipment/business. Straight real estate purchases get the full 25-year term.

How do lenders handle raw materials and WIP inventory in working capital sizing?

Manufacturing-literate banks size working capital lines based on the operating cycle: days of raw materials on hand + days of work-in-process + days of finished goods + days of accounts receivable, minus days of accounts payable. That produces your working capital investment, and the line is typically sized at some percentage of that (60%-80% depending on collateral quality).