Significant Fee Relief for U.S. Manufacturers and Important Clarifications on 7(a) Loan Rules
Introduction
The U.S. Small Business Administration (SBA) has released official notices detailing its Fiscal Year 2026 fee updates for its flagship 7(a) and 504 loan programs. These updates include unprecedented fee waivers for manufacturers—part of the White House’s Made in America initiative—and critical clarifications to the 7(a) 90‑day rule. Read on for what these changes mean for small business owners, lenders, and brokers.
Key Updates & Official References
1. Fee Relief for Manufacturers
7(a) Loans:
The SBA notice states:
“For loans to manufacturers (NAICS sectors 31‑33) of $950,000 or less, the upfront fee is 0% (does not apply to MARC loans).” Small Business Administration
This means manufacturers borrowing under $950K through the 7(a) program pay no upfront guarantee fee.
504 Loans:
As per the 504 notice:
“For 504 loans to manufacturers (NAICS Sectors 31‑33), including loans made under the 504 Debt Refinance with Expansion option and the 504 Debt Refinance without Expansion Program, the upfront guaranty fee and the annual service fee will be waived.” Small Business Administration
Manufacturers will have both upfront and annual fees waived—whether it’s for new financing or refinancing.
2. 7(a) 90-Day Rule Clarification
The SBA clarifies how multiple 7(a) loans within a short timeframe are treated:
“When two or more 7(a) loans are approved for an applicant (including its affiliates), within 90 days of each other, and one or more of the 7(a) loans is an WCP or EWCP loan, the loan amounts are combined as if they are one loan to determine the percentage of guaranty and Upfront Fee relief for manufacturers.”
“For purposes of calculating the Upfront Fee in this scenario, WCP and EWCP loans are not combined with any other 7(a) loans since their guaranty fees are based on the maturity as outlined in [the notice].” Small Business Administration
What this means: When manufacturers structure multiple 7(a) loans—including Working Capital Program (WCP) or Export WCP (EWCP) loans—within 90 days, the SBA aggregates them solely for eligibility and guaranty/fee relief. However, WCP/EWCP loans remain on their own fee schedule and are not mixed for upfront fee calculation.
Links to the Official SBA Notices
- 7(a) FY 2026 Fee Notice (Effective October 1, 2025 – September 30, 2026): [View the 7(a) notice PDF]
- 504 FY 2026 Fee Notice (Effective October 1, 2025 – September 30, 2026): [View the 504 notice PDF]
.png)
%20Loan%20Application%20Checklist.png)
