The manufacturing industry is important to the U. S. economy, employing more than 17 million people and generating over $2 trillion each year. And, like every business large and small, manufacturing needs capital to thrive and grow. Some of those needs can be met with SBA loans. Some types of businesses do not qualify for an SBA loan, but a wide range of businesses do. These include manufacturing, motels and hotels, restaurants, retail stores, auto repair shops, and many more.

How Can SBA Loans be used in Manufacturing?

SBA loans can be used for these purposes:

  • Short term working capital. 
  • Buying manufacturing equipment. 
  • Building or buying a new manufacturing facility or upgrading a current facility. 
  • Refinancing debt. 
  • Buying out a competitor.  

Why are SBA Loans Desirable?

SBA loans can be an excellent source of financing because they:

  • Provide access to additional capital when financing can’t be arranged elsewhere. 
  • Offer reasonable terms and conditions, usually with lower down payments, limited interest rates, and negotiable term lengths. 
  • Allow for consistent cash flow during the year.  

How to Get an SBA Loan for a Manufacturing Business

SBA loans are not distributed by the government but rather are facilitated through approved financial institutions including banks, credit unions, and online lenders. Qualifications include:

  • The business must be a for-profit business. 
  • Operate in the United States or its territories. 
  • Have a good credit score. 
  • Have assets greater than liabilities.  

How to Get SBA Loans for Manufacturing

  • Provide specific information about what amount of financing will be needed and how it will be used. 
  • Explain how the business will achieve its financial projections. 
  • Supply complete financial documentation. 
  • Provide credit history information. 
  • Be prepared to offer collateral. 
  • Provide information about company ownership and management.  

Seek Expert Financing Assistance

Contact Green Leaf Capital, based in Conyers, GA for commercial funding solutions to meet the needs of all businesses. Our extensive portfolio of financial products helps companies succeed using business loans for expansion, acquisition, new construction, or working capital.