New Bill Boosts SBA Loans for US Manufacturers, Creating $20 Billion Guarantee Program

The Made in America Manufacturing Finance Act is designed to give a serious financial shot in the arm to small businesses that make things stateside. The core of this bill is twofold: first, it creates a brand new, highly targeted loan guarantee program at the Small Business Administration (SBA), and second, it dramatically raises the ceiling on existing SBA loans for these specific manufacturers.

The New $20 Billion Power-Up

Section 1 establishes a new SBA loan guarantee program specifically for “small manufacturers.” This isn’t a small operation; the SBA is authorized to guarantee up to 90% of these loans, with the total guarantee amount capped at $20 billion outstanding at any one time. Think of it as the government co-signing loans so banks feel better about lending big money to help these businesses grow. The funds can be used for three things: buying equipment, building or renovating facilities, and, importantly, training workers for jobs at that facility.

This is a big deal for a small manufacturer looking to upgrade a decades-old factory floor or build a new wing. For instance, a small metal fabrication shop (NAICS 332) in Ohio that needs a $5 million CNC machine could potentially get a loan with a 90% government guarantee, making that crucial expansion possible. The inclusion of workforce training is key; it means a manufacturer can finance the expensive process of training new hires to run that specialized equipment.

Who Gets the Golden Ticket?

This bill is hyper-focused, which is where the details matter. Section 2 defines a “small manufacturer” very strictly. To qualify, your business must meet two criteria: 1) Your primary activity must fall under NAICS sectors 31, 32, or 33 (think food, textiles, chemicals, plastics, machinery, electronics, transportation equipment, etc.), and 2) All of your production facilities must be located within the United States.

That second point is the gatekeeper. If you’re a small electronics assembler (NAICS 334) that does 99% of your work in California but relies on a tiny finishing shop you own in Mexico, you are out of luck. This provision ensures the benefits are strictly reserved for businesses with 100% domestic production footprints, which is a clear policy signal but also excludes manufacturers with complex or partially global supply chains.

Bigger Loans for Bigger Dreams

Beyond the new guarantee program, Sections 3 and 4 tackle existing SBA loan limits. This is the part that affects the day-to-day financing for qualifying manufacturers. Currently, the maximum size for the standard 7(a) loan—the SBA’s most common program—is $3.75 million. This bill doubles that maximum for small manufacturers to $7.5 million.

Similarly, the limits for export-related loans are bumped up significantly. For example, the maximum for the Export Working Capital Program goes from $5 million to $10 million for small manufacturers. This means a company making specialized machinery can now secure much larger loans to cover the inventory and production costs associated with a major international contract. The bill also increases the maximum amount for Small Business Investment Act (SBIC) loans from $5.5 million to $10 million.

In short, if you are a small business making goods entirely in the U.S. (NAICS 31, 32, or 33), this legislation doesn't just offer a new program—it fundamentally changes your borrowing capacity across the board, giving you access to the kind of capital previously reserved for much larger firms.