This spring, the Small Business Administration introduced several changes to its lending programs to make it easier for small businesses involved in manufacturing and the food supply chain to access funding. Learn more about these changes below.

International Trade Loans for Manufacturing

One of the most significant changes involves the SBA’s International Trade Loan (ITL) program, which historically was designed for U.S. businesses exporting products outside of the country. In response to current economic pressures facing the American manufacturing sector, the SBA expanded ITL eligibility to all manufacturing businesses, regardless of whether they export. 

Now, eligible manufacturing businesses can apply for an ITL to:  

• Upgrade or replace equipment
• Modernize facilities and production lines
• Diversify supply chains and bring critical production back to the United States
• Strengthen inventory levels
• Expand operations and capacity through strategic acquisitions
   

As part of this change, the SBA increased the ITL guarantee from 75% to 90%, which reduces lender risk and can make it easier for qualifying businesses to access financing. Additionally, for manufacturing loans of $950,000 or less, the SBA has waived the guaranty fee, potentially reducing the cost of borrowing for smaller manufacturers.   

Grocery Guarantee Program

The SBA also expanded ITL financing eligibility for small businesses involved in the food supply chain through its "grocery guarantee" initiative. These loans come with a 90% guarantee and are intended to support investments that strengthen food distribution and help reduce overall grocery costs for consumers.   

Businesses eligible for the grocery guarantee program include:

• Farming and fishing
• Crop production
• Wholesale distribution
• Trucking and transportation
• Warehousing and storage
   

Questions?

For businesses in manufacturing or the food supply chain, these SBA lending changes may create new opportunities to access financing and invest in growth. If you have questions about eligibility or are interested in learning more, contact your Bell business banker today.