Wood product manufacturing loans: SBA rates and eligibility
All Other Miscellaneous Wood Product Manufacturing · NAICS 321999 · Program that usually fits: 7(a) and 504
NAICS 321999 is the catch-all for wood products that don't fit sawmills, millwork, cabinets, pallets or other named wood codes. It covers makers of wood pellets and fuel logs, dowels, tool handles, wooden ladders, cork products, clothespins, toothpicks and similar items. Loans usually fund saws, CNC routers, dryers, pellet mills and the shop building. Lenders focus on customer contracts, wood supply, equipment resale value and fire and dust safety.
Who qualifies
Wood product manufacturers that meet the SBA size standard for this code, which covers most independent shops. Lenders want owners with woodworking or plant operations experience and reliable sources of logs, lumber or sawmill residue. Craft makers selling online can qualify if the business has real revenue history. Cabinet makers, furniture makers and pallet builders have their own codes but are underwritten in a similar way.
Which SBA program fits
504 for shops and big equipment
Buying a building or a pellet line or kiln fits a 504 loan with a long fixed rate. Manufacturers can access up to $5.5 million in SBA debenture.
7(a) for mixed needs
Covers buying an existing manufacturer, equipment, raw material inventory and working capital in one loan on a 10-year term. Real estate included in the same loan can run up to 25 years.
Express and microloans for small shops
A small maker adding a CNC router or a dust collection system can use Express, or a microloan under $50,000. Microlenders also help craft businesses with limited credit history or collateral.
What borrowers use the money for
- CNC routers, lathes and saws
- Pellet mills, dryers and kilns
- Dust collection and fire suppression
- Buying or expanding a shop building
- Lumber and raw material inventory
Typical loan amounts, down payment and terms
Loans to wood product makers range widely, from $50,000 for a small shop to $3 million or more for a pellet plant. 504 projects usually need about 10% down, or 15% for a start-up. Acquisitions need at least 10% equity. Equipment runs up to 10 years and real estate up to 25 years.
What lenders look at for a wood product manufacturer
Lenders review whether a few customers, such as a big-box retailer or a single distributor, buy most of the output. They check raw material supply and price swings, especially for pellet makers that depend on sawmill residue. Fire and dust hazards mean they verify insurance coverage and safety systems. Expect equipment appraisals, a look at seasonality for heating products like pellets and firewood, and questions about import competition for commodity items.
Example: a $500,000 loan
At today's maximum variable 7(a) rate of 10.00% over 10 years, the payment would be about $6,608 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan 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
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Questions about wood product manufacturers loans
What businesses fall under All Other Miscellaneous Wood Product Manufacturing?
NAICS 321999 covers wood products not classified elsewhere, such as wood pellets and fuel logs, dowels, tool and broom handles, wooden ladders, cork products, clothespins and toothpicks. Sawmills, millwork, cabinets, pallets and furniture have their own codes.
Can a wood pellet plant get an SBA loan?
Yes, if it meets the SBA size standard. Pellet producers use 504 loans for plants, pellet mills and dryers, and 7(a) loans for working capital and acquisitions. Lenders focus on feedstock supply contracts and seasonal heating demand.
Can I finance a CNC router with an SBA loan?
Yes. A CNC router is a standard equipment purchase under 7(a), Express or 504. Small shops often use Express for speed. The equipment serves as collateral, and the term usually matches its useful life up to 10 years.
Can a woodworking start-up get an SBA loan?
Yes, with a business plan, relevant experience and at least 10% equity. Lenders want evidence of customers or orders. A microloan up to $50,000 can work for a small shop that a bank considers too early.
What rate does a $500,000 manufacturing loan carry?
With prime at 7.00%, a 7(a) loan above $350,000 is capped at 10.00% variable. A 504 loan's SBA portion had a 25-year fixed rate of about 6.57% in November 2026. Smaller loans carry higher caps.
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.