Special SBA programs and lender-useful rules

SBA lists complete and partial changes of ownership as eligible 7(a) uses, and SBA's lender program comparison includes acquiring a business or partial ownership in a business. That is where stock purchases, membership-interest transfers, partner buyouts, and partial buy-ins usually belong. Do not assume every stock or equity transfer qualifies automatically: the lender still has to verify structure, ownership and control, valuation, seller debt, equity injection if required, eligibility, and repayment ability.

Ask the lender whether the transaction should be packaged as an asset purchase, stock/equity purchase, complete change of ownership, or partial ownership change.

SBA has specific guidance for employee-ownership and cooperative structures. A June 2024 SBA notice allows SBA lenders to process loans to cooperatives, and eligible small businesses owned or controlled by cooperatives, under delegated authority. The same notice removed the independent business-valuation requirement for certain 7(a) ESOP change-of-ownership loans. This can matter for succession planning, worker-owned businesses, and buyouts where employees are becoming owners.

If employees, an ESOP, or a cooperative will own the business, raise that structure before term-sheet work starts.

SBA maintains a Franchise Directory for lenders and CDCs to evaluate eligibility when the applicant operates under a franchise, license, dealer, jobber, or similar agreement. A brand appearing in the directory is not SBA endorsement, approval, or a promise of business success. It is an eligibility tool. Franchise deals move faster when the applicant, lender, and franchisor identify the agreement and directory status early.

Check the current SBA Franchise Directory and ask the lender what franchise documentation they need from the franchisor.

Community Advantage Small Business Lending Companies are mission-oriented, primarily nonprofit intermediaries. SBA's current support page says CA SBLCs focus on loans up to $350,000 for underserved markets, including low-to-moderate-income communities, HUBZones, rural areas, newer businesses, qualifying veteran-owned businesses, and businesses with a majority low-income or LMI-area workforce. It is a lender-routing idea, not a guarantee.

When a request is small, early-stage, rural, veteran-owned, or light on collateral, ask whether a CA SBLC or local mission lender is a better first conversation.

The 504 program is not only for buying buildings and long-life equipment. SBA says 504 can refinance qualified existing debt when the rules are met. The lender/CDC has to check whether the debt is tied to 504-eligible fixed assets, whether the business has operated long enough, payment history, collateral, loan-to-value, and whether the debt is excluded because it is already an existing 504 project or government-guaranteed loan.

If the borrower owns business real estate or heavy equipment debt, ask a CDC whether 504 refinance is available before default risk or balloon pressure gets worse.

Export Express is the streamlined export route for smaller international-growth requests. SBA's export page says Export Express loans can be up to $500,000, and the 7(a) lender terms page places Export Express inside the export programs that can receive enhanced SBA support. It can finance costs tied to entering or expanding export markets, such as trade shows, translation, export marketing, inventory, equipment, or working capital.

Ask whether the lender offers Export Express when the request is under $500,000 and speed matters.

EWCP is built for exporters that can generate export sales and need working capital before the sale is completed. SBA says EWCP loans can be up to $5 million and are commonly tied to export-related inventory, production, foreign receivables, or specific international orders. This is the program to discuss when the borrower has export demand but cash is tied up before payment arrives.

Use the SBA list of delegated EWCP lenders or an Export Finance Manager when the need is order-based export working capital.

International Trade Loans help small businesses enter international markets, compete with foreign sellers, or respond to import competition. SBA's export page describes ITL as combining fixed-asset financing, working capital, and debt refinancing with a maximum loan of $5 million and SBA's maximum guaranty of 90% on the total loan amount. In 2026, SBA updated ITL participation rules effective May 1, 2026.

Ask about ITL when the project involves export growth, import-competition response, facilities, equipment, working capital, or eligible refinance.

SBA's Working Capital Pilot can support one line of credit for domestic and export working-capital needs. SBA describes both transaction-based lines for specific projects or contracts and asset-based lines with advances against inventory and receivables. It can be useful when a borrower has mixed U.S. and international orders and does not want separate facilities for each side of the business.

Ask whether WCP fits when the borrower has recurring domestic and export orders, receivables, or inventory cycles.

Not every export need is a loan. SBA's State Trade Expansion Program (STEP) provides awards through states and territories to help small businesses with trade expansion, while SBA Export Finance Managers provide trade-finance counseling and referrals. SBA also publishes lists of participating export lenders and EWCP delegated lenders. These are useful before the borrower picks a lender path.

Check STEP availability in the borrower's state and contact an SBA Export Finance Manager before packaging an international-growth request.

The 7(a) Manufacturers' Access to Revolving Credit (MARC) program is SBA's first loan program dedicated to manufacturers. It provides working capital — inventory, new projects, short-term needs — as a revolving line of credit or a term loan, up to $5 million. It is for businesses whose NAICS code starts with 31, 32, or 33. SBA delivered the first MARC loans in December 2025.

Ask a 7(a) lender about a MARC line and whether your NAICS code qualifies.

Effective May 1, 2026, SBA raised its guarantee to 90% — versus 75% on most 7(a) loans — for qualifying manufacturers, delivered through the International Trade Loan structure. SBA's stated uses include upgrading equipment, modernizing production lines, moving supply chains away from foreign adversaries, bringing production back to the U.S., and building inventory resilience. A stronger guarantee can make a lender more comfortable saying yes; it is not approval.

Ask a 7(a) lender about the Made in America Loan Guarantee for a reshoring or modernization project.

For fiscal year 2026, SBA waived most upfront loan fees for small manufacturers: no upfront guaranty fee on 7(a) manufacturing loans up to $950,000, and no upfront or annual service fee on 504 manufacturing loans. The waivers run through September 30, 2026 — after that, a new fiscal-year notice will govern, so ask your lender or CDC to confirm the fee treatment on your loan.

Ask your lender or CDC to confirm current manufacturer fee treatment before you apply.

The 7(a) Working Capital Pilot offers monitored lines of credit up to $5 million — asset-based (borrow against receivables and inventory) or transaction-based (finance specific projects or orders). Manufacturers are its largest user group. It suits businesses with recurring working-capital cycles that a plain term loan fits poorly.

Ask a 7(a) lender whether a WCP line fits your cash cycle better than a term loan.

A free SBA tool connecting businesses with over a million verified U.S. manufacturers, producers, and suppliers across four sourcing platforms. Not a loan program — but if you are reshoring production or replacing a foreign supplier, it pairs naturally with the financing above.

Browse the portal to find domestic suppliers before your lender conversation.

The Made in America Manufacturing Finance Act would raise the per-loan maximum for qualifying small manufacturers to $10 million under 7(a) and 504. It passed the House in December 2025 but is not law — today's per-loan caps still apply. We list it so you are not misled by headlines.

Nothing to apply for yet — track the bill on Congress.gov and verify status with your lender.

On December 22, 2025, following a national-security determination required by the FY2025 defense bill, the FCC added foreign-produced drones and critical drone components — including all DJI and Autel equipment — to its Covered List. Equipment on that list cannot get the new FCC authorizations most wireless devices need before they can be imported, marketed, or sold in the U.S., so new foreign drone models are effectively shut out. Drones already purchased or already authorized are not affected, and the listing is under legal challenge — so treat this as the current state, not a permanent one.

Check the FCC's Covered List page for current status before relying on this.

Drones and components that qualify as Buy American domestic end products — made in the U.S. with domestic component cost above 65% — and gear on the Pentagon's Blue UAS list are exempt until January 1, 2027. The government has said domestic-content requirements should keep rising. The FCC's own list of covered critical components doubles as a market map for U.S. makers: flight controllers, data links and radios, ground control stations, navigation systems, sensors and cameras, batteries and battery management, motors, and the software behind them.

If you make or could make any of these, discuss financing scenarios with a lender and consider the Blue UAS pathway.

A June 2025 executive order directs federal agencies to prioritize U.S.-made drones. A 2023 law steers federal, state, and grant-funded buyers away from covered foreign drones. Congress appropriated $1.4 billion for the small-drone industrial base through defense channels, and a January 2026 rule eased export licensing for U.S.-made commercial drones. None of this guarantees any business anything — it describes where public demand is being pointed.

Sell to government buyers through the usual contracting channels; an APEX Accelerator counselor can help.

To SBA, a drone or drone-component maker is a manufacturer: 7(a) up to $5 million for working capital and equipment, MARC for a revolving line, 504 through a CDC for a facility or long-life production equipment, and the Made in America Loan Guarantee for reshoring projects. For R&D, America's Seed Fund (SBIR/STTR) awards equity-free funding, and defense agencies regularly post drone-related topics.

Ask a lender which structure fits, and search open SBIR topics for drone and autonomy keywords.

Farms, ranches, processors, and farm-related businesses can pursue 7(a) loans up to $5 million, 504 financing for land, buildings, and long-life equipment, and microloans up to $50,000 — the old rule routing farm loans to USDA first was removed from the regulations in 2022. Eligibility still runs through the normal SBA screens, so verify your situation with an SBA lender.

Use SBA Lender Match or ask a local lender about SBA options for your operation.

Announced March 27, 2026 and effective May 1, 2026: food supply chain businesses — growers, livestock and poultry operations, aquaculture and fishing, grocery wholesalers and retailers, refrigerated warehousing, and food logistics — became eligible for a 90% SBA guarantee through the International Trade Loan program. SBA reported over $30 million across 19 loans in the first month. If you run a grocery store planning an expansion, remodel, refrigeration, or distribution investment, this is the program to ask about by name.

Ask a 7(a) lender about International Trade Loan eligibility under the Grocery Guarantee.

Agricultural exporters can ask about SBA's export family, with guarantees up to 90%: Export Express up to $500,000, the Export Working Capital Program up to $5 million, and International Trade Loans. STEP grants, run through your state, can help pay for trade shows, translation, and export marketing.

An SBA Export Finance Manager at a U.S. Export Assistance Center can point you to the right lender.

Family-farm land purchases and production credit belong to USDA's Farm Service Agency: direct farm ownership loans up to $600,000, operating loans up to $400,000, microloans up to $50,000, and guaranteed loans through commercial lenders of roughly $2.3 million (adjusted annually). In disasters, SBA cannot lend to agricultural producers (small aquaculture excepted) — farm production losses also go to FSA. Knowing this saves you weeks.

For land and production credit, start at your local FSA office or USDA Service Center.

In March 2026, SBA highlighted Working Capital Pilot lines for U.S. home builders: project-based revolving or non-revolving lines up to $5 million that finance direct project costs — labor, materials, subcontractors — for residential construction, including multi-phase projects. SBA describes financing of up to 100% of direct project costs; the exact structure is set with the lender.

Ask a 7(a) lender about a WCP project line, or email SBA's working-capital team via the official page.

The Builders CAPLine is the long-standing 7(a) path for building or substantially rehabilitating residential or commercial property for resale — including spec builds, which are otherwise generally ineligible as investment property. Lines run up to 60 months plus estimated construction time, with conditions set in SBA's builder regulations (a track record of comparable projects, evidence of buyer financing and market demand, and inspection-based disbursements).

Ask a 7(a) lender about the Builders CAPLine and its documentation requirements.

A construction company can use 504 financing through a Certified Development Company for its own office, shop, yard, or heavy long-life equipment — generally up to $5 million per project, or $5.5 million for energy-efficiency and manufacturing projects. 504 cannot fund working capital, inventory, or spec homes, and owner-occupancy rules apply. Since July 4, 2026, builders can combine 7(a) and 504 up to $10 million total.

Find a CDC through SBA and discuss whether your facility or equipment purchase fits.

Public and many private construction jobs require bid, performance, and payment bonds. SBA guarantees surety bonds for small contractors who cannot get bonding on their own — on contracts up to $9 million (non-federal) and $14 million (federal). That opens bid opportunities that would otherwise be closed.

Apply through an SBA-authorized surety agent — the official page lists them by state.

Small Business Investment Companies are privately owned funds, licensed and regulated by SBA, that invest in U.S. small businesses as debt, equity, or both — typically $250,000 to $10 million for debt and $100,000 to $5 million for equity, per SBA. You approach SBICs directly, not through SBA: research funds in the official directory whose stated industry, region, and size focus match yours, prepare a business plan showing a path to profitability, and make contact. No SBIC is obligated to invest.

Search the official SBIC directory and consider contacting funds whose focus matches your business.

Eleven federal agencies award R&D funding to small businesses developing new technology — the government takes no equity and no ownership of your IP. Phase I awards typically run $50,000 to $275,000 and Phase II $750,000 to $1.8 million, varying by agency. Congress reauthorized the programs through September 30, 2031, and topics relevant to drones, ag-tech, and advanced manufacturing appear regularly. Note: outside these R&D programs, SBA does not provide grants for starting or expanding a business — be wary of anyone who says otherwise.

Search open topics on SBIR.gov; free proposal help is available through many SBDCs.