Apparel Accessories and Other Apparel Manufacturing
315990
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SBA Loans for Apparel Accessories and Other Apparel Manufacturers: Financing Growth in Fashion Production
Introduction
Apparel accessories and other apparel manufacturers design and produce clothing items and complementary fashion products such as hats, gloves, belts, scarves, and costume wear. Classified under NAICS 315990 – Apparel Accessories and Other Apparel Manufacturing, this sector includes businesses that operate at the intersection of design, craftsmanship, and fashion retail. While demand for apparel remains steady, manufacturers face financial challenges such as raw material costs, labor expenses, production equipment, and seasonal fluctuations in demand.
This is where SBA Loans for Apparel Manufacturers can provide essential support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help fashion businesses purchase materials, upgrade equipment, expand production facilities, and manage cash flow in a competitive marketplace.
In this article, we’ll explore NAICS 315990, the financial hurdles apparel manufacturers face, how SBA loans provide solutions, and answers to frequently asked questions from business owners in the fashion industry.
Industry Overview: NAICS 315990
Apparel Accessories and Other Apparel Manufacturing (NAICS 315990) includes companies that produce:
- Hats, caps, and headwear
- Gloves and mittens
- Belts, ties, and scarves
- Costume apparel and specialty clothing
- Protective wear and niche apparel items
This industry requires access to raw materials, skilled sewing and design labor, and efficient production facilities to meet consumer and retailer demand.
Common Pain Points in Apparel Manufacturing Financing
From Reddit’s r/fashionbiz, r/smallbusiness, and Quora discussions, apparel manufacturers often highlight these challenges:
- Material Costs – Fabric, thread, dyes, and accessories fluctuate in price, impacting profitability.
- Labor Shortages – Skilled sewing and garment workers are difficult to recruit and retain.
- Equipment Needs – Industrial sewing machines, cutting tables, and embroidery systems require capital investment.
- Cash Flow Gaps – Retailer payments often lag behind production schedules, creating liquidity issues.
- Seasonal Demand – Fashion cycles require upfront investment before peak sales periods.
How SBA Loans Help Apparel Manufacturers
SBA financing provides affordable, flexible capital that helps apparel companies manage cash flow, purchase equipment, and scale production.
SBA 7(a) Loan
- Best for: Working capital, payroll, raw materials, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity for fabric purchases, staff wages, and marketing campaigns.
SBA 504 Loan
- Best for: Production facilities and large-scale equipment.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for opening new factories, upgrading machinery, or expanding warehouses.
SBA Microloans
- Best for: Small or startup apparel shops.
- Loan size: Up to $50,000.
- Why it helps: Useful for sample production, local marketing, or small equipment purchases.
SBA Disaster Loans
- Best for: Apparel firms impacted by natural disasters or emergencies.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds for damaged facilities, lost inventory, or supply chain disruptions.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit apparel manufacturing business with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, supplier invoices, and sales contracts.
- Find an SBA-Approved Lender – Some lenders specialize in manufacturing and retail supply chain financing.
- Submit Application – Provide a business plan highlighting production capacity, retailer partnerships, and growth strategy.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval typically takes 30–90 days.
FAQ: SBA Loans for Apparel Accessories and Other Apparel Manufacturers
Why do banks often deny loans to apparel companies?
Banks may view these businesses as risky due to seasonal demand, thin margins, and overseas competition. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance sewing machines and production equipment?
Yes. SBA 7(a) and 504 loans can fund industrial sewing machines, embroidery equipment, and cutting systems.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional loans.
Are startup apparel manufacturers eligible?
Yes. Entrepreneurs with design experience and retail demand may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/factories: Up to 25 years
Can SBA loans support sustainable and eco-friendly apparel?
Absolutely. Many apparel companies use SBA financing to expand sustainable production practices and eco-friendly product lines.
Final Thoughts
The Apparel Accessories and Other Apparel Manufacturing industry is essential to the fashion supply chain but faces financial hurdles tied to materials, equipment, and seasonal cash flow. SBA Loans for Apparel Companies provide affordable, flexible financing to stabilize operations, expand production, and remain competitive in a fast-moving industry.
Whether you run a small accessories shop or a larger apparel manufacturing business, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 315990.
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#Preferred Lenders Program
#SBA Express Program
#Existing or more than 2 years old
#Startup
#Loan Funds will Open Business
#Change of Ownership
#New Business or 2 years or less
#7a General
#Variable Rates
#Fixed Rates
#Asset Base Working Capital Line (CAPLine)
#International Trade Loans
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#7a with WCP
#Contract Loan Line of Credit (CAPLine)
#7a with EWCP
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#Preferred Lenders with EWCP
#Seasonal Line of Credit (CAPLine)