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 owned businesses. The following blog article has been provided by Paul Long of Gesa Credit Union (https://www.gesa.com/):
Unlocking Growth for U.S. Manufacturers: What Business Owners Need to Know About the SBA’s New MARC Loan/Line of Credit Program
If you’re a manufacturing business owner—or considering buying one—there’s a powerful new financing tool you need to know about: the Manufacturers’ Access to Revolving Credit (MARC) program, launched by the U.S. Small Business Administration (SBA). This groundbreaking initiative is designed to provide flexible, working capital to small manufacturers, helping them scale operations, create jobs, and bring production back to American soil.
What Is the MARC Program?
The MARC program is a new loan product under the SBA’s flagship 7(a) loan program, specifically tailored for manufacturers classified under NAICS codes 31-33. It offers revolving lines of credit or term loans of up to $5 million, with SBA guarantees up to $3.75 million
Unlike traditional SBA loans, MARC loans are restricted to working capital use only—meaning funds can be used for inventory, payroll, raw materials, and short-term operational needs, but not for fixed asset purchases. The line cannot be used for debt refinance, changes or ownership or to pay delinquent taxes.
Why It Matters for Business Owners and Buyers of Manufacturing Businesses
Whether you’re already running a manufacturing business or looking to acquire one, MARC offers several strategic advantages:
- Flexible Capital for Growth
MARC loans are designed to meet the dynamic cash flow needs of manufacturers. You can structure the loan as a revolving line of credit, allowing you to draw funds as needed and repay them as cash comes in. This can be done through a traditional borrowing base or for strong credit requests and open and active line that is renewed annually.
- Support for Onshoring and Expansion
The program aligns with the SBA’s Made in America Manufacturing Initiative, which aims to reshore production and rebuild domestic supply chains. MARC loans can help fund expansion projects, new customer contracts, and increased production capacity.
- Enhanced Loan Structuring Options
MARC loans can be combined with other SBA, business acquisition loans or conventional loans, giving buyers and current owners more flexibility in financing working capital needs or growth. Also, it is important to note that through September 30, 2026, SBA fees on regular SBA 7(a) loans for Manufacturers of amounts $950,000 or less, the upfront guaranty fee is reduced to 0% saving up to $25,000 in SBA fees.
Key Features of MARC Loans
- Loan Size: Up to $5 million
- Use of Proceeds: Working capital only
- Structure: Revolving line of credit or term loan
- The Line of Credit can have a term up to 10 years revolving with an additional 10-year automatic term out period.
- Interest Rates: For line amounts greater than $350,000, interest rate cannot exceed Prime + 3.00%
- Fees: The lender can charge up to an annual fee of .50% up to 2% on the outstanding balance (not the line amount). SBA fee is the same as other SBA guaranteed loans.
- Collateral: Mandatory liens on accounts receivable, inventory and other business assets including a blanket UCC filing.
- Servicing: Annual reviews, Debit Service Coverage Ratio testing, and collateral monitoring
- Eligibility: Small manufacturers under NAICS 31-33
What Buyers of a Manufacturing Business Should Know
If you’re acquiring a manufacturing business, MARC loans can be a strategic tool to finance post-acquisition working capital needs. You’ll need to ensure the target company meets SBA eligibility requirements and has the operational discipline to comply with MARC’s servicing standards.
Next Steps for Business Owners
- Review your working capital needs and determine if a revolving credit facility is right for your business.
- Prepare for compliance: Ensure your financials, collateral, and operational practices align with MARC’s requirements.
- Talk to an SBA-approved lender about MARC eligibility and structuring options.
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The MARC program represents a major step forward in empowering small manufacturers to thrive in a competitive global market. Whether you’re scaling your current operation or entering the manufacturing space, this new SBA initiative could be the key to unlocking your next phase of growth.
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 over 13 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 WA, OR and ID.
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-owned 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”.