Question 1

What makes the MARC program unique?

Accepted Answer

MARC is the SBA's first-ever loan program dedicated exclusively to U.S.-based manufacturers. Five key differentiators: (1) Exclusive focus on American manufacturing—only businesses with NAICS codes 31-33 qualify, (2) Faster approval process prioritized for qualified applicants, (3) Better terms than traditional 7(a) loans—up to 10-year term loans with relaxed 1:1 debt service coverage vs. the standard 1.25:1, (4) Option to combine with other SBA programs for comprehensive financing packages, and (5) Access to senior debt structures if you qualify. It's purpose-built to help American manufacturers compete and grow.

Question 2

Why was MARC created specifically for U.S. manufacturers?

Accepted Answer

MARC is part of a broader federal initiative to reshore American manufacturing and strengthen domestic production. The SBA recognized that manufacturers have unique working capital needs—seasonal production cycles, inventory-heavy operations, and long receivable periods—that weren't well-served by existing loan programs. MARC addresses these specific challenges with longer terms, flexible structures, and a streamlined process designed around how manufacturers actually operate.

Question 3

How does MARC help me get better terms than a traditional 7(a)?

Accepted Answer

MARC offers several term advantages over traditional 7(a) loans: (1) Up to 10-year term loan maturity with competitive rates, (2) Relaxed debt service coverage requirement of 1:1 vs. 1.25:1, making it easier to qualify, (3) 24-month grace period before annual lender reviews, and (4) Streamlined approval process with priority treatment. These better terms translate to lower monthly payments and more manageable cash flow for your manufacturing operation.

Question 4

Can MARC be combined with other financing for a complete capital solution?

Accepted Answer

Yes—this is one of MARC's most powerful features. MARC can be layered with: (1) SBA 7(a) term loans for equipment, acquisitions, or debt refinancing, (2) SBA 504 loans for real estate and major fixed assets, and (3) Conventional commercial loans. This 'capital stacking' approach lets you fund both fixed assets and additional capital needs simultaneously. We specialize in structuring these combinations to maximize your total available capital—often unlocking $2-3 million more than manufacturers realize they qualify for.

Question 5

What is senior debt and can I access it through MARC?

Accepted Answer

Senior debt refers to loans that have priority repayment status—they get paid first before other creditors. If you qualify for MARC and have strong financials, you can access senior debt structures that provide favorable terms and pricing. The SBA guarantee (up to 85% for loans ≤$150K, 75% for larger loans) makes this senior financing more accessible to manufacturers who might not qualify through conventional channels. This means better rates and more security for your capital structure.

Question 6

What businesses are eligible for SBA MARC loans?

Accepted Answer

MARC loans are exclusively for U.S. manufacturers operating under NAICS codes 31-33. This includes all manufacturing sectors: food and beverage production, metal fabrication, machinery manufacturing, electronics assembly, textiles, plastics, firearms manufacturing, and more. Your primary business activity must be manufacturing—if manufacturing is secondary to another business line, you may not qualify.

Question 7

What are the basic requirements to qualify?

Accepted Answer

To qualify for MARC financing, your business must: (1) Be a for-profit U.S.-based business, (2) Operate primarily in manufacturing (NAICS 31-33), (3) Meet SBA size standards for your industry, (4) Demonstrate creditworthiness and ability to repay, and (5) Not have delinquent federal debt. We assess all these factors during your free consultation.

Question 8

Can startups or new manufacturers qualify for MARC?

Accepted Answer

Yes, new businesses and startups can qualify for MARC loans. However, if you don't have historical financial performance, you'll need to provide detailed projections showing debt service coverage of at least 1:1 within 2 years of first disbursement. The projections must include supporting assumptions that justify the expected performance.

Question 9

What credit score is needed for MARC financing?

Accepted Answer

There's no specific minimum credit score for MARC loans. Lenders evaluate overall creditworthiness, including business financials, cash flow, management experience, and collateral. That said, stronger credit profiles improve approval odds and may secure better terms. We help present your application in the strongest possible light.

Question 10

Can I qualify if I have an existing SBA loan?

Accepted Answer

Yes. MARC loans can be layered with existing SBA 7(a) and 504 loans. However, the maximum SBA guaranty to any one business and its affiliates cannot exceed $3.75 million across all programs. We specialize in capital stacking strategies that maximize your total available financing.

Question 11

What documents are required to apply?

Accepted Answer

Typical documentation includes: 3 years of business tax returns, recent interim financial statements (balance sheet and P&L), personal financial statements for owners with 20%+ ownership, business debt schedule, and a brief description of how you'll use the funds. We provide a complete checklist during your consultation and help gather everything needed.

Question 12

How long does the MARC approval process take?

Accepted Answer

The MARC loan program receives priority treatment inside the SBA system. Once your file is packaged correctly—which is exactly what we help you with—lender approval usually takes 1-2 weeks, and SBA authorization follows promptly. Our team ensures a smooth, complete submission so your loan moves through the process without delays.

Question 13

What's the step-by-step process?

Accepted Answer

The process works in four stages: (1) Free Consultation—we assess your needs and eligibility, (2) Application Preparation—we help gather documents and prepare your package, (3) Lender Submission—we submit to our partner banks specializing in MARC, (4) Approval & Funding—you receive capital and we're compensated by the lender. You pay nothing out of pocket.

Question 14

Can I apply if I was previously declined for an SBA loan?

Accepted Answer

Yes. A previous SBA decline doesn't disqualify you from MARC. The reasons for prior declines matter—we'll review what happened and determine if MARC's different requirements (like the relaxed 1:1 debt service coverage) might change the outcome. Many manufacturers declined for 7(a) loans qualify for MARC.

Question 15

What are the interest rates on MARC loans?

Accepted Answer

MARC loans follow standard SBA 7(a) interest rate guidelines. For loans over $350,000, rates cannot exceed Prime + 3.0%. For smaller loans, spreads may be slightly higher. Rates can be fixed or variable. Current rates depend on market conditions at the time of approval—we'll provide specific rate estimates during your consultation.

Question 16

What are the repayment terms?

Accepted Answer

MARC term loans have a maximum maturity of 10 years—significantly longer than traditional bank financing, which typically offers 3-5 year terms for similar amounts. This extended repayment period results in much lower monthly payments, keeping more cash in your business for operations and growth.

Question 17

What collateral is required?

Accepted Answer

MARC loans require a lien on all business assets, including titled equipment and real estate. However, inadequate collateral alone cannot be the reason for decline—the SBA guaranty helps bridge collateral gaps. Personal guarantees from owners with 20%+ ownership are also required.

Question 18

How much do your services cost?

Accepted Answer

Nothing—borrowers pay zero to work with us. We help you prepare a stronger application package, match you with the right lender for your situation, and move your loan through the system faster than going direct. All at no cost to you. We're compensated by our lending partners, so our interests are fully aligned with getting you funded.

Question 19

Are there SBA guaranty fees?

Accepted Answer

Yes, SBA charges guaranty fees on all 7(a) loans including MARC. For loans over $1 million, the fee is typically 3.5% of the guaranteed portion, plus an annual servicing fee. These fees are usually financed into the loan. Despite these fees, MARC loans typically offer better overall terms than conventional alternatives.

Question 20

What can MARC loan proceeds be used for?

Accepted Answer

MARC loans are specifically for working capital needs: inventory and raw material purchases, payroll and operational expenses, accounts receivable financing, and general working capital to bridge cash flow gaps. You can also use MARC alongside other financing for equipment or expansion projects.

Question 21

What can MARC funds NOT be used for?

Accepted Answer

MARC proceeds cannot be used for: non-working capital debt refinancing, changes of ownership, paying delinquent withholding taxes or funds held in trust, floor plan financing, or paying a creditor in a position to sustain a loss. If you need financing for these purposes, we can explore other SBA programs.

Question 22

Can I use MARC for equipment purchases?

Accepted Answer

MARC is designed for working capital, not fixed asset purchases. However, you can use MARC alongside a traditional SBA 7(a) loan for equipment. This capital stacking approach lets you fund both equipment and the working capital needed to put it into production—we specialize in structuring these combinations.

Question 23

How is MARC different from a traditional SBA 7(a) loan?

Accepted Answer

MARC delivers significantly better terms for manufacturers: up to 10-year term loans with competitive rates, relaxed debt service coverage (1:1 vs. 1.25:1) making it easier to qualify, 24-month grace period before annual reviews, and purpose-built structures for manufacturing operations. MARC is designed exclusively for manufacturers (NAICS 31-33) and offers a streamlined approval process with priority treatment inside the SBA system.

Question 24

How does MARC compare to an SBA 504 loan?

Accepted Answer

SBA 504 loans are for major fixed assets—real estate and large equipment—with exceptional terms (up to 25 years, below-market fixed rates). MARC is for working capital. These programs complement each other perfectly: use 504 for your facility/equipment and MARC for the working capital to operate it. This combination gives you access to comprehensive capital with the best possible terms for each component. We help structure these combinations.

Question 25

Why choose MARC over a bank line of credit?

Accepted Answer

The advantages are substantial: (1) Higher limits—MARC offers up to $5 million vs. typical bank lines of $250K-$500K, (2) Longer terms—up to 20 years vs. 12-24 months with annual renewal, (3) Easier approval—the SBA guarantee (up to 85%) helps manufacturers who might not qualify conventionally, (4) Lower payments—dramatically reduced monthly obligations with longer amortization. For most manufacturers, MARC provides more capital on better terms than traditional bank lines.

Question 26

Is MARC better than invoice factoring or asset-based lending?

Accepted Answer

For most manufacturers, yes. Factoring costs 2-5% per invoice (24-60% APR equivalent) and can damage customer relationships when the factor contacts your clients. Asset-based lending requires intensive collateral monitoring and reporting overhead. MARC provides a stable, long-term credit facility at dramatically lower cost with the backing of an SBA guarantee. The only tradeoff is approval time—but our streamlined process closes the gap significantly.

Frequently Asked Questions

Why MARC?