MICHIGAN · NAICS 31-33
Michigan manufacturing projects run across the deepest contract manufacturing economy in the country, anchored by the automotive supplier base. Studies translate capacity, throughput, contract concentration, and labor models into projections, and reconcile real estate and equipment structures against coverage with the state's Collateral Support Program potentially layering on top.
FEASIBILITY TRIGGER
Fiscal 2026 gives manufacturers the strongest program economics, with 7(a) fees waived on loans up to $950,000, 504 fees waived entirely, and a $5.5 million debenture.
Michigan generated 3,041 SBA-disbursed manufacturing loans between FY2010 and FY2026, worth $1.63 billion in approved 7(a) and 504 financing at an average of $535,000 per deal. Ranked #6 of 38 states for manufacturing SBA volume, the state captures 4.1% of national manufacturing dollars. 85.5% of the loans ran through 7(a) with 504 covering the remainder; 307 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 3,041 |
| Approved volume | $1.63 billion |
| Average loan size | $535,000 |
| 7(a) share | 85.5% |
| Approvals since FY2024 | 307 |
| State rank by loan count | #6 of 38 |
Among the 2,434 seasoned loans in this segment (approvals FY2010–FY2021), 5.5% 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 5.5% adverse-resolution rate below the national manufacturing benchmark of 6.6% supports the credit story for well-underwritten Michigan projects in this class. Across 3,041 SBA loans averaging $535,000, 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 Michigan 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.
Michigan 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, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying deals. 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.
Michigan's automotive supplier base is the deepest contract manufacturing economy in the country, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying fixed-asset deals.
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.
Compare neighboring markets: Massachusetts, Minnesota, Texas.
Public SBA and CDC program records, cited as program evidence
Veteran-owned, SBA 504 Green Energy through Ohio Statewide Development Corporation with Wright-Patt Credit Union
First Green Energy 504 closed in Ohio, 2024, national program evidence
Dayton, Montgomery County, Ohio
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