CALIFORNIA · NAICS 31-33
California manufacturing projects benefit from the strongest 2026 program economics: 7(a) fees waived on loans up to $950,000, 504 fees waived for manufacturers, and a $5.5 million debenture. Studies validate throughput, capacity, order-book assumptions, and the capital plan that supports a viable operating model through the loan term.
FEASIBILITY TRIGGER
Fiscal 2026 gives manufacturers the strongest program economics: 7(a) fees waived on loans up to $950,000, 504 fees waived entirely, and a $5.5 million debenture; studies validate throughput, capacity, and order-book assumptions.
California generated 8,511 SBA-disbursed manufacturing loans between FY2010 and FY2026, worth $7.07 billion in approved 7(a) and 504 financing at an average of $830,000 per deal. Ranked #1 of 38 states for manufacturing SBA volume, the state captures 18.0% of national manufacturing dollars. 74.8% of the loans ran through 7(a) with 504 covering the remainder; 1,015 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 8,511 |
| Approved volume | $7.07 billion |
| Average loan size | $830,000 |
| 7(a) share | 74.8% |
| Approvals since FY2024 | 1,015 |
| State rank by loan count | #1 of 38 |
Among the 6,735 seasoned loans in this segment (approvals FY2010–FY2021), 5.9% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for manufacturing is 6.6%, against 7.3% across all industries. That performance runs below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 5.9% adverse-resolution rate below the national manufacturing benchmark of 6.6% supports the credit story for well-underwritten California projects in this class. Across 8,511 SBA loans averaging $830,000, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every California manufacturing project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
California projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive where California land and improvement costs run high. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
California manufacturers, from advanced and aerospace to food and beverage production, access the program's most favorable 2026 terms when projects clear the size-standard and use-of-proceeds tests.
For a national view of this asset class, see our manufacturing SBA feasibility overview, and read our related analysis in the manufacturing lending research on our blog.
Public SBA and CDC program records, cited as program evidence
SBA 504 through Capital CDC
Manufacturing facility, national program evidence
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