SBA loans for aircraft and aerospace manufacturers
Aircraft Manufacturing · NAICS 336411 · Program that usually fits: 504 or 7(a)
Small aircraft and aerospace parts manufacturers are among the best candidates for SBA 504 loans: the program gives manufacturers a lower rate, a 40% SBA portion on projects up to $5.5 million, and a 25-year fixed term on buildings and heavy equipment. Kit-plane builders, component shops and MRO businesses all fall under this NAICS or its neighbors.
Who qualifies
Established manufacturers expanding a plant, buying CNC and composite equipment, or buying out a competitor. Lenders want three years of financials, backlog or contracts with airframe OEMs or the Department of Defense, and FAA production or repair-station certificates where they apply.
Which SBA program fits
504 for buildings and heavy equipment
Manufacturers get a higher SBA portion and a lower debenture rate. The CDC funds 40% at a fixed rate, the bank 50%, and you put in 10%.
7(a) for working capital and acquisitions
Covers contract working capital, tooling and the purchase of another shop, up to $5 million.
Export Working Capital if you sell abroad
SBA export programs fund the production cycle on foreign orders.
What borrowers use the money for
- Plant expansion or a new production building
- CNC machining centers, autoclaves and composite tooling
- Buying a parts supplier or competitor
- Working capital against OEM and government contracts
- Refinancing equipment debt at a fixed rate
Typical loan amounts, down payment and terms
Manufacturing 504 projects commonly range from $1 million to $7 million. Equity is 10%. The SBA portion carries a 25-year fixed rate, and the manufacturer rate priced at 6.34% in November 2026. Working-capital 7(a) loans are 10 years.
Example: a $2,500,000 loan
At today's maximum variable 7(a) rate of 10.00% over 25 years, the payment would be about $22,718 a month. Most well-qualified borrowers get a lower rate. On a 504 project, the SBA-backed 40% would be fixed at 6.34% (November 2026, 25-year, manufacturing). Try your own numbers.
Free · takes 1 minute · no credit check
Get matched with an SBA lender
Answer four questions and see SBA lenders that fit your state, loan size and industry, with your maximum rate. Compare at least two quotes before you sign. Rates move monthly: check current SBA loan rates and the 504 rate.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA 7(a) rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
Related industries
SBA lenders active nationwide
Questions about aircraft manufacturing loans
Can an aircraft parts manufacturer get an SBA loan?
Yes. Aerospace manufacturers are eligible, and 504 loans are the usual tool for plants and equipment because manufacturers get a higher SBA share and a lower fixed rate. 7(a) covers working capital and acquisitions.
What is the SBA 504 manufacturer rate?
The 25-year manufacturing debenture priced at 6.34% effective in November 2026, below the 6.57% standard rate. The bank sets its own rate on the 50% first lien.
How much can a manufacturer borrow on a 504 loan?
The SBA portion can reach $5.5 million for small manufacturers, so with the bank's half the total project can exceed $13 million. Most small aerospace shops borrow $1 million to $5 million.
What is the down payment on a manufacturing 504 loan?
10% of the project cost for an established business, 15% for a start-up or a special-purpose building. Equipment you already own free and clear can sometimes count as equity.
Does the SBA finance working capital for government contracts?
Yes. A 7(a) loan or the SBA CAPLines program can fund the labor and materials to perform on a contract, with the contract receivables as collateral.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.