A New SBA Financing Option for Manufacturers: Understanding MARC Loans

Access to reliable working capital is critical for manufacturers. Inventory cycles can be long, customer payments can be unpredictable and growth opportunities often arrive before cash is on hand.

Recognizing these challenges, the U.S. Small Business Administration (SBA) recently introduced a new financing option designed specifically for manufacturers: the 7(a) Manufacturers’ Access to Revolving Credit (MARC) loan program. For eligible businesses, MARC loans can provide ready funds with more flexibility and less red tape than many other types of small business loans.

Here’s what to know about this exciting new SBA 7(a) loan opportunity.

What is an SBA MARC loan?

The MARC program became available for loans starting October 1, 2025. MARC is the only SBA 7(a) program targeted directly at manufacturers, to improve access to working capital while giving lenders greater flexibility to structure and manage credit. This is good news for customers of experienced SBA Preferred Lenders like Western Alliance Bank, with bankers who spend time understanding your business goals to tailor a loan program to your needs.

MARC loans can be structured as:

• A revolving loan: Companies use only the portion of the loan they need for up to 10 years. At 10 years, the line of credit will convert to a fixed-rate term loan for up to another 10 years.
• A term loan: Funds are disbursed in full at loan closing, with a repayment period up to 10 years.
• A maximum loan amount of $5 million: Like other SBA 7(a) loans, eligible companies can borrow up to $5 million, whether the loan is structured as a revolver or a term loan.

What businesses are eligible for an SBA MARC loan?

Eligibility is limited to businesses engaged in manufacturing, generally defined as North American Industry Classification System (NAICS) codes 31–33. This sector includes companies that transform raw materials into new products through mechanical, physical or chemical processes.

In addition to traditional manufacturers, some businesses are surprised to learn they may qualify, including:

• Food processing companies
• Breweries, wineries and distilleries
• Commercial bakeries
• Certain commercial printers

How MARC loans support working capital needs

MARC loan proceeds may be used only for working capital purposes, including:

• Day-to-day operating expenses
• Managing inventory and receivables
• Refinancing existing debt used solely for working capital

One of the defining features of MARC is that revolving loans are considered “open.” As the borrower pays down the balance, funds may be re-advanced up to the approved limit, subject to lender review.

Key terms and structure

Some of the core features of MARC loans include:

• Maximum loan amount: $5 million
• Maturity:
  • Revolving loans: up to 20 years (typically 10 years revolving followed by a required term-out period, or payments that pay off the loan in the assigned time)
  • Term loans: up to 10 years
• Debt service coverage: Borrowers must demonstrate the ability to generate enough cash flow to pay their debt obligations within two years of the first disbursement. This is measured by a calculation called the debt service coverage ratio (DSCR).

How MARC differs from traditional SBA working capital loans

Compared with traditional 7(a) working capital loans, MARC offers several notable differences. These features can make MARC particularly attractive for manufacturers with complex working capital cycles or seasonal needs.

• Reduced collateral requirements: The SBA requires a lien on business assets only. There is no requirement to pledge personally owned real estate, which makes MARC loans attractive for business owners who do not wish to encumber their personal property.
• Simplified monitoring: Unlike asset-based SBA programs, MARC does not require time-consuming borrowing base certificates (reports from borrowers that specify accounts receivable and inventory) or other frequent reporting to the SBA.
• Greater lender flexibility: Lenders may use their own credit policies, within SBA standards. For Western Alliance customers, that means your borrowing process with us will be transparent and in line with other commercial credit programs we offer.

Fees and ongoing review

MARC loans are subject to SBA guaranty and annual service fees. Unlike some other SBA loans to manufacturers, MARC loans do not receive SBA guaranty fee reductions. For borrowers, this means that MARC loans may carry higher SBA fees than some other 7(a) options. In exchange, borrowers may benefit from greater flexibility, fewer collateral requirements and less ongoing reporting.

For revolving MARC loans, lenders are required to conduct an annual financial review beginning no later than the end of year two to determine whether the line may continue to revolve or should convert to a term loan.

Is a MARC loan right for your business?

MARC loans are not a one-size-fits-all solution. They are best suited for manufacturers seeking flexible working capital financing and who can support the program’s financial and operational requirements.

Because eligibility, structure and ongoing management matter, early conversations with an experienced SBA lender are critical to determine which type of SBA loan is most appropriate for your business.

Western Alliance Bank is an SBA Preferred Lender with deep experience serving manufacturers nationwide. If you are evaluating working capital options or want to understand how MARC compares with other SBA solutions, we encourage you to connect with your Western Alliance banker or our SBA lending team to explore what may work best for your business.

Contact our dedicated team of business banking experts to discuss current rates and how to identify the ideal solution for your financing needs.

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