MINNESOTA · NAICS 31-33
Minnesota manufacturing deals carry the strongest program economics in fiscal 2026, with 7(a) fees waived on loans up to $950,000, 504 fees waived entirely, and a $5.5 million debenture, and the state adds an Automation Loan Participation Program aimed squarely at equipment modernization. Machine shops drew $11.2 million across just 11 calendar 2025 loans, the med-tech supply chain's signature in the state's SBA book.
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; Minnesota adds an Automation Loan Participation Program aimed squarely at equipment modernization.
SBA 7(a) and 504 lenders funded 2,891 manufacturing projects across Minnesota between FY2010 and FY2026, moving $1.73 billion in approved capital at an average ticket of $597,000. That volume places Minnesota at #7 of 38 states measured for manufacturing SBA activity, or 4.4% of national manufacturing dollars. The 7(a) program carried 80.6% of the loan count, with 504 taking the balance, and 279 approvals have hit the pipeline since FY2024.
| Disbursed loans (FY2010–FY2026) | 2,891 |
| Approved volume | $1.73 billion |
| Average loan size | $597,000 |
| 7(a) share | 80.6% |
| Approvals since FY2024 | 279 |
| State rank by loan count | #7 of 38 |
Among the 2,317 seasoned loans in this segment (approvals FY2010–FY2021), 5.0% 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 5.0% adverse-resolution rate below the national manufacturing benchmark of 6.6% supports the credit story for well-underwritten Minnesota projects in this class. Across 2,891 SBA loans averaging $597,000, 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 Minnesota 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.
Minnesota projects 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 calendar 2025 average rate ran 0.63 points below the national figure. 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.
Machine shops drew $11.2 million across just 11 calendar 2025 loans, the med-tech supply chain's signature in the state's SBA book.
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
$5,220,000 SBA 504 through B:Side Capital with BOK Financial
Employee-to-owner purchase of a 23,554 square foot building with fabrication expansion for a roughly 90-employee HVAC manufacturer, national program evidence
Denver, Denver County, Colorado
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