Check the SOP: Q&A

Q – In order to qualify for the maximum available SBA debenture ($4million), how is a business classified as a “Small Manufacturer”?

A – One of the most significant changes to the 504 program is the creation of a “Small Manufacturer” category. The maximum 504 loan amount recently increased to $4 million for small manufacturers.

A “small manufacturer” is defined as a small business concern that has its primary business classified in Sector 31, 32, or 33 of the NAICS, and has all of its production facilities located in the U.S. The most significant change to manufacturing is the creation of the Computer and Electronic Product Manufacturing subsector. This new subsector brings together those establishments engaged in the production of computers, computer peripherals, communications equipment, similar electronic products, and the components for such products. The subsector was created because of the economic significance these industries have attained, because their rapid growth suggests that the products of these industries will become even more important to the economies of the North American countries, and because the production processes of the establishments in these industries are fundamentally different from the production processes for other machinery and equipment.

A number of important activities have been moved out of manufacturing while other activities have moved in. Publishing has moved to the new Information sector and logging to Agriculture, Forestry, and Fishing. Coming into manufacturing are bakeries that bake on site and custom manufacturing.

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