An Innovative Working Capital Option for Manufacturing Businesses: Is an SBA MARC Loan Right for You?

Manufacturing has an outsized impact on the U.S. economy: Every $1 spent in manufacturing generates $2.69 in economic activity, according to the National Association of Manufacturers.¹  Yet manufacturers often must pay for materials, inventory, payroll and other production costs well before they receive customer payments.

Launched by the U.S. Small Business Administration in September 2025 and effective October 1, the SBA 7(a) Manufacturers’ Access to Revolving Credit (MARC) program provides eligible manufacturers with a working capital option designed around those cash-flow cycles. Available as either a term loan or revolving line of credit, MARC can help manufacturers manage inventory, fluctuating receivables, contract fulfillment and growth-related working capital demands.

Which Companies Are Eligible for a MARC Loan?

Although MARC is an SBA small-business program, “small” is a regulatory classification, not necessarily a description of a company’s scale. Depending on its industry, an eligible manufacturer may be a substantial operation with a sizable workforce and complex capital needs.

To qualify, a business generally must:

• Be primarily engaged in manufacturing under North American Industry Classification System (NAICS) sectors 31-33
• Meet the applicable SBA industry size standard or the alternative size standard for 7(a) loans
• Meet the SBA’s other eligibility, creditworthiness and repayment requirements

Under the alternative size standard, a business and its affiliates may qualify if their tangible net worth does not exceed $20 million and their average net income after federal income taxes does not exceed $6.5 million for the preceding two completed fiscal years. This broader definition helps explain why the SBA classifies 98% of U.S. manufacturing firms as small businesses. In other words, MARC eligibility can extend well beyond very small shops to established manufacturers in industries ranging from food and beverage production to furniture, apparel, electronics and medical devices.

How Does MARC Financing Work?

MARC offers financing options designed to support both short-term working capital needs and longer-term growth. With a maximum loan amount of $5 million, MARC loans can be structured in two ways:

• Revolving loans for up to 20 years, with up to a 10-year line of credit that can convert to a fully amortizing term loan for up to an additional 10 years
• Term loans with repayment periods up to 10 years

A MARC loan’s extended repayment period can help manufacturers build inventory, fulfill contracts and scale operations. With a revolving loan, as borrowers pay down the balance, they may be able to access additional funds during the revolving period.

Why Choose MARC Over Other Loan Options?

MARC’s flexible financing may make it a stronger fit than other loan types for some manufacturers. Compared with traditional asset-based lines and some other SBA structures, MARC financing through Western Alliance Bank may offer a less administratively intensive approach. Depending on the borrower and transaction, Western Alliance’s structure may include:

• No Western Alliance requirement to pledge personal real estate as collateral, although SBA personal-guaranty requirements may still apply
• No monthly borrowing base certificates
• Annual review instead of more frequent reporting requirements
• No liquidity covenants

The streamlined reporting requirements can help reduce the administrative burden on small businesses. Another benefit: MARC loans can be used alongside other SBA loans to maximize accessible financing for many business needs.

What Do Lenders Look for in a MARC Loan Application?

If an SBA 7(a) MARC loan appears to fit your needs, the next step is documenting your operations and future plans. As part of its underwriting, a lender will evaluate the company’s historical financial performance, ability to repay and planned use of funds. Depending on the financing request, helpful documentation may include:

• Existing revenue
• Multiyear contracts
• Capacity constraints limiting growth
• Strong growth trajectory
• Credible financial projections

If you’re unsure whether MARC is the right option, talk with a relationship banker. Learn more about MARC loans here.

Western Alliance: A Banking Partner to Drive Your Business Forward

Importantly, not all SBA lenders are prepared to offer MARC loans. As an SBA Preferred Lender, Western Alliance Bank provides SBA financing expertise with personalized service, including a single point of contact, direct access to decision-makers and a streamlined approval process. Throughout your company’s lifecycle, Western Alliance’s manufacturing and logistics banking specialists can provide financial solutions tailored to your evolving needs.

Connect with Western Alliance’s experienced SBA lending specialists today.