The New MARC Program: a great opportunity for Lenders

Have you heard about SBA’s new MARC loan program?

MARC stands for Manufacturer’s Access to Revolving Credit, and it’s the first SBA loan program specifically for small-business manufacturers. The program is scheduled to start on October 1st, 2025 – so now is the time to prepare. Lenders should also be mindful of SBA compliance requirements when offering these loans.

Let’s take a look at the opportunities and – of course – the requirements.

Opportunities first!

• The majority of U.S. manufacturers – we should say, the vast majority, at 98% – are small businesses with fewer than 500 employees. They’re typically underserved by traditional loans, which is probably why SBA has created this program for them. This is a tremendous opportunity for SBA Lenders to serve their communities.

• The loans are flexible. Both term loans and revolving lines of credit are available under the MARC umbrella. You can structure the loan to fit your manufacturing customers’ working capital cycles.

• Of course, as with all SBA 7(a) loans, if you have PLP authority, you can process MARC loans directly, streamlining the approval process.

Now the program terms:

• The maximum loan size is $5 million

• The SBA guaranty varies according to loan size:

  • 85% for loans $150,000 and less

  • 75% for loans over $150,000

• Maturity varies according to loan type:

  • Up to 10 years for term loans

  • For revolving lines, up to 10 years revolving, and then it converts to term for as long as an additional 10 years

• The loans require a blanket lien on business assets, with exceptions for vehicle and trading assets

• Interest rates are, of course, subject to standard SBA maximums

There are additional requirements for the revolving lines:

• Lenders must perform an annual review of the Borrower’s financials and loan performance

• If the Borrower fails to meet performance standards, the Lender must convert the line to a fully-amortizing term loan

• SBA allows Lenders to apply asset-based lending practices if they wish, allowing for customized risk management according to the Lenders’ preferred practices

With all that – who’s eligible?

• Obviously, the Borrower must qualify as an SBA-defined small business

• Since this is about manufacturing businesses, the Borrower must operate under an NAICS manufacturing code, 31 – 33

• The loan proceeds are limited to working capital only

• The loan may not be used for debt refinance, ownership changes, tax delinquencies, or floor-plan financing

Assuming you, as an SBA Lender, want to offer this loan to the manufacturers in your community, what should you do to prepare?

• Read and understand the full SOP guidelines in Appendix 13 to the SOP 50 10 8 (you can find the Appendix here) – and make sure your team is up to speed on all the criteria and requirements

• Identify the manufacturers in your community who could benefit, and engage with your sales team to reach out to the leaders of those businesses

As always, we can help with MARC-specific SBA training to ensure SBA compliance with this new program, as well as assisting with checklist and process documentation reviews (you know we love checklists!). Give us a call at 877.576.0819, or drop us a line through our contact form here. We’d love to help you get this new program up and running!