Introduction
Throughout the course of your business venture, it is likely that you will need funding at some point. There are a lot of different sources through which you can obtain funding, whether it be traditional bank loans or funding through family and friends you have. If you own a manufacturing business, you have the option of getting a MARC loan. MARC loans are a great way to expand your operations and could be a great resource for your manufacturing business.

Background of MARC Loans

MARC loans were created to complement SBA’s 7(a) and 504 loan programs and help small manufacturers, who make up 98% of the total manufacturers[1] in the U.S. This new initiative was done in March 2025 when the Small Business Association (SBA) announced the Made in America Manufacturing Initiative[2] with the aims to “restore American economic dominance and national security by empowering small manufacturers.” The initiative reduced regulations through the Office of Advocacy and made it easier to get access to 504 loans, which can be used for real estate, construction, and equipment, while also expanding the 7(a) Working Capital Pilot program, which provides funding for inventory purchases and export-related expenses.

How to Apply

To be eligible to receive a MARC loan, you must meet SBA eligibility requirements and be engaged in manufacturing. To be considered a manufacturing company, your company needs an NAICS 31-33 code. The SBA eligibility requirements are:

Be an operating for profit business
Be located in the U.S.
Meet the SBA size requirements[3]
Be creditworthy with a reasonable ability to repay the loan
Not be an ineligible business type
Unable to obtain credit on reasonable terms from a non-federal, non-state, and non-local government source

After determining that your business is eligible to apply for a MARC loan, you would then find an SBA Preferred Lenders Program (PLP) lender. The lender will ask for information such as three years of Balance Sheet and P&L Statements if applicable, franchise agreements, detailed lists of all collateral, operating agreements, and other lender-specific requirements to get the loan.

How MARC Loans Work

The MARC loan allows the funding to either be a revolving line of credit or a term loan. The term loans can be used for short-term working capital needs whereas lines of credit can be used to expand working capital by leveraging the equity of their established facility or equipment. Term loans can have a maximum maturity of 10 years while the revolving loans can have a maximum maturity of 20 years but must not be able to revolve for more than 10 years. Once the revolving period ends, the loan must be converted to an amortizing loan with a maximum 10-year repayment timeline.

MARC loans have a maximum loan amount of $5,000,000 with SBA guaranteeing 85% of loans less than $150,000 and 75% for loans greater than $150,000. These loans can be a combination of both 7(a) and 504 loans. In order to have the guaranty, there is a guaranty fee that is part of the upfront costs. This is an important consideration because for fiscal year 2026, SBA announced they would waive upfront fees, which includes the guaranty fee and annual service fee for 7(a) manufacturing loans.

The reason a business owner might choose a combination of the 7(a) and 504 loans depends on what they plan on using the funds for. If you plan on purchasing commercial real estate or large machinery, then the 504 loan could be better suited. If you need working capital (which is not allowed for 504 loans), to purchase supplies, or refinance current business debt, then a 7(a) loan could be more appropriate for your needs.

Interest rates can be negotiated but are not allowed to exceed the SBA maximum which is dependent on the amount that is borrowed and uses a base percentage plus the Prime or SBA Peg Rate that they call the base rate. According to the SBA website[4], the current rates for 7(a) loans are:

Fund Usage

Because MARC loans can be a combination of 7(a) and 504 loans, the acceptable usage of the funds can be broader. The available uses are:

Short and long-term working capital
Purchasing machinery and equipment
Improving real estate and buildings
Purchasing or constructing buildings or land
Improving land, streets, utilities, parking lots, and landscaping
Refinancing and repaying current qualified debt

Conclusion

When it comes to keeping your business funded, there are all sorts of financing options. Getting the best rates possible with the least amount of restrictions for capital uses can be tough to navigate. If you are a manufacturer looking to expand your customer base, the MARC loans could be a great financing option. To help determine if this is the best route for your business to take, reach out to Volpe Consulting & Accounting today!

If there’s a pain point within your operation that you’d like to discuss, we’re here. We’d appreciate the opportunity to look into it with you and hopefully provide some insight as to how you can move forward. For more information, or to just put a few faces to the name,

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