SBA’s New MARC Loans—SBA 7(a) Working Capital Solutions for Manufacturers

September 9, 2025

Bob Coleman
Founder & Publisher

SBA’s New MARC Loans—SBA 7(a) Working Capital Solutions for Manufacturers

SBA has introduced a new initiative to expand capital access for U.S. manufacturers: the MARC Program (Manufacturers’ Access to Revolving Credit). Effective October 1, 2025, MARC becomes an official new niche lending product.

This program is a significant step forward in SBA’s effort to modernize lending tools, reduce barriers to financing, and provide manufacturers with greater flexibility in meeting their working capital needs.

What is the MARC Program?

7(a) MARC loans are available exclusively to small businesses engaged in manufacturing (NAICS sectors 31–33). Loan proceeds may be used only for working capital needs — not for ownership changes, debt refinance, or floor plan financing.

Loan Amounts & Guarantees

  • Maximum loan size: $5 million.
  • Maximum SBA guaranty: $3.75 million.
  • Guaranty percentage: 85% for loans ≤ $150,000; 75% for loans > $150,000.

Loan Structures

  • May be structured as term loans (up to 10 years) or revolving lines of credit (up to 20 years, with no more than 10 years of revolving availability).
  • Term loans may allow for an interest-only period before amortization.
  • Revolving MARC loans cannot be sold on the secondary market and must include provisions to term-out if borrowers fail to meet program requirements.

Interest Rates

  • For loans over $350,000: capped at Prime + 3.0%.
  • Tiered maximums apply for smaller loans (Prime + 4.5% for $250k–$350k; Prime + 6.5% for ≤ $50k).

Collateral Requirements

  • Lenders must file liens on all business assets, including real estate and titled equipment, unless exceptions apply.
  • For revolving structures, trading assets (A/R and inventory) must be secured.

Extraordinary Servicing Fees

  • Revolving MARC loans allow lenders to charge either:
  • Up to 50 basis points annually on the maximum loan amount, or
  • Up to 2% annually of the outstanding balance for asset-based lines.

MARC creates a tailored product for manufacturers, an industry with unique working capital cycles and financing needs. By allowing longer maturities, interest-only options, and revolving access, SBA is giving manufacturers flexibility that traditional 7(a) loans cannot provide.

For lenders, MARC offers:

  • An additional tool to serve manufacturing clients.
  • Broader structuring options, aligned with commercial credit practices.
  • Assurance that SBA’s guaranty applies under prudent lending standards.

For borrowers, MARC offers:

  • Improved liquidity and cash flow management.
  • Access to larger loan amounts and longer repayment horizons.
  • Expanded opportunities for growth, hiring, and investment in production.

Compliance & Underwriting Requirements

Lenders must adhere to standard SBA credit analysis practices, ensuring borrowers demonstrate at least 1:1 debt service coverage (DSCR) within two years of disbursement. The analysis must focus on cash flow as the primary repayment source, not collateral liquidation.

Annual reviews are required for revolving lines. If a borrower fails to meet cash flow, collateral, or compliance requirements, the lender must convert the line into a fully amortizing term loan.

To learn more and hear expert insights, join the upcoming Coleman webinar on the MARC Program: Coleman Webinar Registration