Apparel manufacturing business loans
Apparel Accessories and Other Apparel Manufacturing · NAICS 315990 · Program that usually fits: 7(a)
SBA loans for small apparel and accessory makers usually fund production equipment, inventory and working capital rather than real estate. Think hat and cap makers, glove and belt makers, embroidery and cut-and-sew shops, and private-label producers. Cash moves slowly in this business: fabric is bought months before goods ship, and wholesale buyers often pay on 30- to 60-day terms. Lenders focus on that gap, on gross margin per unit, and on how much of the business depends on one retailer or brand.
Who qualifies
Manufacturers of hats, caps, gloves, scarves, belts, neckwear, uniforms and similar items, including contract sewers and brands that run their own production. Lenders want production or merchandising experience, a clear sales channel and current purchase orders or wholesale accounts. Direct-to-consumer brands that outsource all production may be classed as retailers or wholesalers instead, which does not affect eligibility but changes how the lender views collateral.
Which SBA program fits
7(a) for equipment and growth
Covers industrial sewing machines, embroidery heads, cutting tables, inventory and working capital, or the purchase of an existing apparel company, on terms up to 10 years.
CAPLines for purchase orders
SBA working capital lines can be tied to purchase orders or receivables, which suits seasonal production for large wholesale buyers. Advances are repaid as each buyer pays, so the line revolves with the season.
504 for a production building
Manufacturers can use a 504 loan to buy a plant, with a debenture of up to $5.5 million at a long fixed rate. The bank holds the first lien and the borrower usually puts in 10%.
What borrowers use the money for
- Industrial sewing, embroidery and heat-press equipment
- Fabric, trims and finished-goods inventory for a season
- Working capital to fill large wholesale purchase orders
- Buying an existing apparel or accessories manufacturer
- Leasehold improvements or a production building
Typical loan amounts, down payment and terms
Most apparel manufacturing loans fall between $100,000 and $750,000. Equipment purchases often run $50,000 to $250,000, while lines tied to seasonal orders scale with the order book. Equipment and working capital terms run up to 10 years, and buildings up to 25 years. Expect at least 10% equity, more for a newer brand without wholesale history.
What lenders look at for an apparel or accessories maker
Customer concentration is the first question, since many small makers sell most of their output to a handful of retailers or brands. Lenders check chargebacks, returns and markdown allowances in wholesale agreements. Inventory is weak collateral because fashion items lose value, so they want aging reports and sell-through data. They also review the cash conversion cycle, from fabric purchase to customer payment, and how tariffs or import costs on materials affect margins.
Example: a $300,000 loan
At today's maximum variable 7(a) rate of 11.50% over 10 years, the payment would be about $4,218 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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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 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
Related industries
SBA lenders active nationwide
Questions about apparel & accessories makers loans
Can a clothing or accessories manufacturer get an SBA loan?
Yes. Apparel and accessory manufacturers are eligible for 7(a), 504 and Express loans. Common uses include sewing and embroidery equipment, inventory, working capital for wholesale orders and buying an existing company. Lenders want sales history or firm purchase orders.
Can I finance a large purchase order with an SBA loan?
Often. An SBA CAPLine, especially a contract or seasonal line, can fund materials and labor for specific orders, with repayment when the buyer pays. The lender will check the buyer's credit, the order terms and your track record delivering on time.
Can I start a clothing line with an SBA loan?
Possibly, but it is hard for brand-new lines. Lenders want industry experience, a sales channel and usually 15% to 20% equity. Many new brands start with a microloan of up to $50,000 and move to 7(a) once they have wholesale accounts or steady online sales.
What are SBA rates for an apparel manufacturing loan?
With prime at 7.00%, a 7(a) loan from $50,001 to $250,000 is capped at 13.00%, from $250,001 to $350,000 at 11.50%, and above $350,000 at 10.00%. 504 debentures for a building carry a fixed rate near 6.57%.
Is inventory accepted as collateral for an apparel loan?
Yes, but at a deep discount. Lenders value fabric and finished goods at liquidation levels because fashion items lose value quickly. Equipment, receivables from creditworthy buyers and personal real estate usually carry more weight in the collateral picture.
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.