The landscape of commercial lending is constantly evolving. Few changes, however, present as clear an opportunity as the SBA’s recent announcement for Fiscal Year 2026. In a decisive move to support the “Made in America” initiative, the SBA is eliminating upfront guaranty fees on most 7(a) and all 504 loans for manufacturing businesses.
For banks and credit unions, this is a green light to aggressively pursue a high-value sector and grow your government-guaranteed loan portfolio. The question is: are you ready to act?
The Details: A Breakdown of the FY 2026 SBA Fee Waivers
Effective October 1, 2025, the new fee structure provides significant cost savings for manufacturing clients (NAICS Codes 31-33), making SBA loans for manufacturers more attractive than ever. You can review the official notices for the 7(a) Loan Program (SBA Information Notice 5000-872051) and the 504 Loan Program (SBA Information Notice 5000-871532) for complete details.
Here are the key changes:
- For 7(a) loans to manufacturers of $950,000 or less, the upfront guaranty fee is reduced to 0%.
- For all 504 loans to manufacturers, both the upfront guaranty fee and the annual service fee are reduced to 0%.
Who Qualifies? Examples of Manufacturing Businesses
These changes apply to a broad range of businesses within the NAICS codes 31-33. This includes companies that transform materials into new products, such as:
- Machine Shops & Metal Fabricators
- Food & Beverage Producers
- Wood Product & Furniture Manufacturers
- Printing & Related Support Activities
- Plastics & Rubber Product Manufacturers
- Apparel & Textile Mills
The Financial Impact: A Real-World Example
To understand the tangible benefit, consider a typical loan scenario. A manufacturing business applies for a $750,000 SBA 7(a) loan to purchase new equipment.
- Before the Waiver: Under the standard fee structure, a loan of this size would incur an upfront guaranty fee of over $12,600. This cost is typically financed into the loan, increasing the total amount the borrower needs to repay.
- With the FY 2026 Waiver: That same loan for a qualifying manufacturer will have a $0 upfront guaranty fee.
This is a direct, five-figure saving that makes your loan offer significantly more competitive and frees up crucial capital for the borrower’s business.
The Opportunity: Why This Is a Game-Changer for Lenders
This fee waiver is more than just a borrower incentive; it’s a strategic tool for your institution. Here’s how it creates a competitive advantage:
- Win Against Conventional Loans: With the primary SBA fee eliminated, your loan officers have a powerful new argument to win deals that might have otherwise gone to conventional financing.
- Unlock a New Client Segment: Manufacturers who were previously hesitant about the costs associated with SBA loans are now prime prospects. This is your chance to capture new, high-quality relationships in a vital sector.
- Drive Profitable Portfolio Growth: By making SBA loans more accessible and affordable, you can increase your volume of government-guaranteed loans, which are crucial for managing risk and driving profitability.
The Challenge: Turning Policy into Profit
While the opportunity is clear, capitalizing on it requires speed and expertise. The world of government-guaranteed lending is complex. Staying on top of constant policy updates, processing requirements, and compliance checks can strain internal resources. Many institutions miss out on growth opportunities simply because they lack the dedicated bandwidth to navigate the intricacies of the SBA.
The Windsor Solution: Your Partner in Seizing Opportunity
As a leading SBA Lender Service Provider (LSP), Windsor Advantage has partnered with over 100 banks and credit unions to navigate these opportunities successfully. Our dedicated team has helped originate more than $3.3 billion in government-guaranteed loans and currently services a portfolio exceeding $2.5 billion.
In addition to our full-service partnership, we empower lenders with Windsor Accel, our cutting-edge SaaS platform designed to streamline the origination of smaller SBA loans. Accel enhances efficiency, reduces overhead, and delivers a superior digital experience for your borrowers, making it easier than ever to profitably capture the high-volume small loan market.
We leverage this extensive experience and technology to provide a decisive edge for your institution:
- Expertise on Demand: Our team lives and breathes SBA policy. We ensure your institution is always ahead of the curve, fully compliant, and ready to act on new opportunities like this one.
- Streamlined Processing: Our Lender Services provide the technology and a dedicated team to manage the entire loan lifecycle, from origination to servicing, dramatically reducing your internal workload.
- Growth-Focused Partnership: We equip your sales teams with the knowledge and tools they need to confidently go after new business.
The starting gun for FY 2026 has been fired. Financial institutions across the country are preparing to capture this new wave of manufacturing business. Partnering with Windsor Advantage ensures you are not just ready, but positioned to lead the market.
Get Equipped to Win Manufacturing Deals
Communicating this change to your borrowers and prospects is key to capitalizing on the opportunity. To help, Windsor Advantage is creating a free Manufacturing Growth Kit for lenders. This kit will include ready-to-use assets like email copy, a PDF explainer for borrowers, and talking points for your team.
Sign up here to be the first to receive the Manufacturing Growth Kit and get other critical SBA news and insights delivered to your inbox.
Frequently Asked Questions (FAQ)
What NAICS codes qualify for the FY 2026 SBA manufacturing fee waiver?
The fee waivers apply to businesses in the manufacturing sector, which are defined as those falling under the North American Industry Classification System (NAICS) codes 31 through 33.
When does this new SBA fee waiver take effect?
The new fees are effective for the 2026 Fiscal Year, which runs from October 1, 2025, through September 30, 2026.
Does the 0% fee apply to all 7(a) loans for manufacturers?
No. The 0% upfront guaranty fee for 7(a) loans applies specifically to those of $950,000 or less. Larger 7(a) loans will be subject to standard fees. However, for the 504 loan program, the waiver applies to all loan amounts.
How can my financial institution best prepare for this change?
The best way to prepare is to educate your commercial lending team, partner with an SBA Lender Service Provider (LSP) like Windsor Advantage to streamline your loan processing, and identify potential manufacturing clients in your market.
Don’t get left behind. Schedule your strategic consultation today to build your roadmap for success in the manufacturing sector.