IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family businesses. The following blog article has been provided by Paul Long of Gesa Credit Union (https://www.gesa.com/):
SBA’s New Program Supporting America’s Food Supply Chain
The Small Business Administration has quietly introduced one of the most consequential updates to its lending programs in years — and it’s aimed squarely at strengthening America’s food supply chain. Through an expansion of the International Trade Loan (ITL) program, the SBA is now offering 90% federal guarantees (up from the standard 75%) for loans supporting businesses across nearly every stage of food production, processing, distribution, and retail.
This shift isn’t just a technical adjustment. It meaningfully reduces lender risk, opens the door for more flexible capital, and positions thousands of food‑related businesses to access financing that may have previously been out of reach.
Why This Matters: A 90% guarantee dramatically alters how lenders evaluate risk. For banks and credit unions it means lenders are more willing to lend to industries with tight margins or volatile input costs and for borrowers, it means easier access to capital, potentially better terms and more financing options for growth or modernization.
Who Qualifies? More Businesses Than You Might Expect. The SBA has identified a broad set of NAICS codes that qualify for the enhanced 90% guarantee, including:
- Grain farming
- Cattle, poultry, and livestock production
- Aquaculture and commercial fishing
- Dairy product manufacturing
- Grocery wholesalers and retailers
- Farm supply stores
- Refrigerated warehousing and storage
- Specialized freight trucking (supporting food logistics)
See the full detailed list at: https://www.sba.gov/article/2026/03/27/sba-announces-grocery-guarantee-promote-affordability
Please note that Restaurants are not a part of this list and are not qualified.
Flexibility: One of the most important aspects of this update is that businesses outside the listed NAICS codes may still qualify. If a company can demonstrate that it has been negatively affected by tariffs, oil prices, inflation, or foreign competition, it may still be eligible for the 90% guarantee. That opens the door for Packaging companies, Equipment suppliers, Cold‑chain logistics providers, Import/export intermediaries and Food‑adjacent manufacturers. This flexibility makes the program far more inclusive than it appears at first glance.
Key details to consider regarding business acquisition under this new program: Changes of ownership are not eligible unless the transaction involves a business that has operated for at least two full fiscal years and is expanding through acquisition within the same NAICS code, a partial change of ownership where proceeds are used to purchase some or all owner interests and at least one original owner remains, or a change of ownership where proceeds are used by current employees, including ESOP transactions, to purchase some or all owner interests.
The food supply chain has faced unprecedented pressure in recent years due to Global disruptions, inflationary spikes, labor shortages and volatile commodity prices.
By expanding this program, the SBA is effectively saying: “If your business helps feed America, we want to help you grow.”
Paul Long is the Vice President of SBA and Small Business at Gesa Credit Union, where he leads initiatives to empower entrepreneurs through strategic lending and financial guidance. With almost 15 years of experience in the SBA industry, Paul has become a trusted advocate for small business growth, specializing in helping owners navigate the complexities of SBA financing in Washington, Oregon, & Idaho.
He is also the co-host of SBA Today, a weekly podcast dedicated to demystifying SBA programs and sharing insights from industry experts. The show is available on YouTube, LinkedIn, and all major podcast platforms. The following is a link to an episode where IBA’s President & CEO, Gregory Kovsky, was a guest: https://youtu.be/-dQ6xIC6_8Q?si=LuL7rmyx1c6eaadi
Paul’s passion lies in helping small businesses succeed—whether they’re just starting out, expanding, or preparing for acquisition. His deep knowledge of SBA lending, combined with a genuine commitment to client success, makes him a go-to resource for business owners and financial professionals alike.
If you have any questions relating to the content of this article, business banking, or using a SBA loan to acquire a business, Paul Long would welcome the opportunity to answer them. Mr. Long can be reached at (253) 300-5414 or Paul.Long@gesa.com.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, accounting, legal, and financial planning communities on subjects relevant to the purchase & sale of privately held companies and family businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.