Valid October 1, 2025 – September 30, 2026
If you own a small or mid-sized manufacturing business, here’s some good news you don’t want to miss. Starting October 1, 2025, the U.S. Small Business Administration (SBA) is waiving most fees on its flagship loan programs for manufacturers. That means real savings — often tens of thousands of dollars — for companies looking to expand, buy equipment, or simply strengthen their cash flow.
This isn’t a minor change. For many manufacturers, the cost of SBA fees has been a roadblock to borrowing. Waiving them, even for a year, could open the door to growth that was previously out of reach.
We work with manufacturers every day. We see the challenges you face: global competition, high equipment costs, supply chain headaches, and pressure to modernize faster than ever. Our understanding and care lean into why we have been named one of the Best Banks in Minnesota. The SBA move doesn’t solve every problem, but it does take one obstacle off the table.
What’s Actually Changing
Let’s keep this simple.
SBA 7(a) loans – For manufacturers, loans of up to $950,000 will have no upfront guaranty fee. That’s usually a 2–3.5% cost. On a $500,000 loan, you’re saving $10,000 or more.
SBA 504 loans – For manufacturers, both the upfront fee and the annual servicing fee are being waived. These are the big loans often used for real estate or large equipment. Over 20 years, that’s a serious amount of money saved.
Timeline – The fee holiday runs October 1, 2025 to September 30, 2026. If you close inside that window, you qualify.
That’s it. No hidden clauses, no gimmicks. If you’re in manufacturing (NAICS codes 31–33), this applies to you.
Why It Matters for Minnesota Small and Mid-Sized Businesses
Manufacturing is capital-intensive. You’re constantly weighing whether to put money into new machines, more staff, or additional space. For smaller companies, a $10,000 fee be a dealbreaker.
Here’s why this waiver matters:
- Cash stays in your business. Instead of writing a check for SBA fees, you can buy another lathe, add a welder to your team, or keep more cash in the bank.
- Projects become doable. That expansion you shelved last year because the upfront costs were too steep? It might now make sense.
- Your ROI improves. When financing costs go down, payback on investments gets faster.
- Momentum builds. The SBA’s goal is clear: strengthen domestic manufacturing. This waiver shows they’re serious.
For business owners, it’s not about the program — it’s about what you can do with the money you keep.
Learn more about SBA loan options for Minnesota Businesses.
How Manufacturers Can Put These Loans to Work
Let’s talk about the real-world ways we see Minnesota manufacturers using SBA financing — especially now with fees waived.
Modernize Your Equipment
A shop floor with outdated machinery is like trying to win a race with a flat tire. With 7(a) or 504 loans, you can finally invest in CNC machines, robotics, or 3D printing tech without the sting of upfront fees.
Expand Your Facility
Maybe you’ve outgrown your current space. A 504 loan can cover the cost of buying land or expanding your building. With no fees, your dollars stretch further.
Upgrade Technology
ERP systems, automation software, IoT devices — these aren’t luxuries anymore. They’re how small shops stay competitive. SBA loans can fund the upgrades, and now the entry cost is lower.
Strengthen Working Capital
It’s not glamorous, but sometimes what you need most is breathing room. 7(a) loans are flexible enough to cover payroll, raw materials, or a large inventory build-up for a new contract.
Reshore Supply Chains
Plenty of Minnesota companies are looking to bring production closer to home. With cheaper SBA financing, reshoring plans suddenly look a lot more feasible.
Go Green and Save
From efficient HVAC systems to solar panels, sustainability upgrades lower your energy bill and boost your brand. A 504 loan makes sense here — especially with zero SBA fees.
Check out our Business Loan Guide for more ideas on how business loans can help you grow.
Examples of Savings
Let’s run through a few examples.
Case 1: A Waconia-based metal fabricator wants a $500,000 7(a) loan to buy equipment. Normally, they’d pay a $10,000–$15,000 fee upfront. This year? $0. That’s enough to cover training for two new employees.
Case 2: A Ramsey medical part manufacturer is planning a $2 million facility expansion. The waived 504 fees save them tens of thousands over the life of the loan. That savings could fund a new truck or cover six months of utility bills.
Real Example: Recently, Security Bank & Trust Co. originated a $1,245,000 SBA 7(a) loan for a business acquisition. The SBA guaranty fee was $32,681.25. Under the upcoming waiver, that fee would have been eliminated — real dollars that could have gone toward working capital, equipment, or hiring. It’s a perfect illustration of how impactful this change will be for local manufacturers.
These aren’t hypotheticals — they’re the kinds of decisions business owners make every day. The waiver just makes the math easier.
Key Things Business Owners Should Know
- You still need good financials. Waived fees don’t change the underwriting.
- Your business must be classified as manufacturing (NAICS codes 31–33). If you’re not sure, we can help you check.
- The window is tight. One year goes by fast. Don’t wait until summer 2026 to start your application.
- Work with an SBA-experienced lender. Not all banks do SBA lending regularly. Security Bank & Trust Co. does, and we’ll guide you through it.
Why the SBA Is Doing This
The SBA isn’t giving money away for fun. This is part of a broader effort to strengthen U.S. manufacturing. By lowering the cost of borrowing, they’re betting more companies will invest, grow, and hire.
It also ties into reshoring — bringing production back to the U.S. after years of outsourcing. Stronger domestic manufacturing means more resilient supply chains and a stronger economy.
For Minnesota, that means more stable jobs in the communities surrounding our 21 locations.
Frequently Asked Questions
Q: Does this mean loans are free?
A: No. You’ll still pay interest and meet normal requirements. The waiver just eliminates certain SBA fees.
Q: Can I refinance existing debt?
A: In some cases, yes — especially under 504 rules. We can look at your situation.
Q: Is this just for big manufacturers?
A: No. It’s aimed at small and mid-sized businesses, which make up 98% of U.S. manufacturers.
Q: Do I have to apply through the SBA directly?
A: No. You apply through a bank like Security Bank & Trust Co., and we handle the SBA side.
How Security Bank & Trust Co. Can Help
We’ve worked with manufacturers across Minnesota, most specifically in:
- Anoka County
- Carver County
- Chisago County
- Dakota County
- Hennepin County
- Isanti County
- McLeod County
- Ramsey County
- Scott County
- Sherburne County
- Sibley County
- Washington County
- Wright County
We know how important timing and cash flow are. Here’s what we do:
- Check eligibility so you know right away if you qualify.
- Handle the paperwork so you can stay focused on running your business.
- Coordinate with CDCs for 504 loans.
- Customize terms to match your growth plan.
And we don’t disappear after the loan closes. We’re a Minnesota bank, invested in the same communities you are.
What You Should Do Next
If you think you might need capital in the next 12–18 months, don’t wait. Here’s a simple checklist:
-
Prepare your commercial loan application and financial packet with our Comprehensive Guide to Commercial Loan Applications
-
Look at your growth plans — expansion, equipment, or working capital.
- Contact us on our Lender Connections page for a quick eligibility review.
Final Word
The SBA’s decision to waive fees on 7(a) and 504 loans for small manufacturers is a rare opportunity. For one year, you can borrow without the usual upfront cost that often makes owners hesitate.
We believe Minnesota manufacturers should be at the heart of this resurgence. If you’re ready to grow, modernize, or just get some breathing room, now’s the time to explore SBA financing.
📞 Call us at 320-864-3171 or contact us online to get started.
Security Bank & Trust Co. – Fueling Minnesotans’ ambitions since 1935.
.jpg?width=200&height=200&name=Brian%20Wagner%20(2).jpg)
