Commercial Bakeries
311812
TD Bank, National Association (DE)
Explore what TD Canada Trust is all about. Learn about our values, initiatives, reporting, news, careers, recent awards, and more.
SaviBank (WA)
We're a community bank that offers personal and business checking accounts, credit cards, safe deposit boxes, home loans & more. Learn how to Bank Savi!
Readycap Lending, LLC (NJ)
Northeast Bank (ME)
Northeast Bank is a Maine-based Community Bank and national Commercial Real Estate lender providing unmatched customer service and financial solutions to achieve your financial goals.
Newtek Bank, National Association (FL)
Explore Newtek Bank for cutting-edge, seamless digital banking. Your gateway to innovative financial solutions.
Manufacturers and Traders Trust Company (NY)
With a community bank approach, M&T Bank helps people reach their personal and business goals with banking, mortgage, loan and investment services.
Main Street Launch (CA)
Lendistry SBLC, LLC (CA)
Harvest Small Business Finance, LLC (CA)
First Command Bank (TX)
Columbia Bank d/b/a Umpqua Bank (CA)
Celtic Bank Corporation (UT)
SBA Loans for Commercial Bakeries: Financing Growth in the Baked Goods Industry
Introduction
Commercial bakeries produce bread, cakes, pastries, cookies, and other baked goods for retail, wholesale, and foodservice distribution. Classified under NAICS 311812 – Commercial Bakeries, this sector includes everything from small family-owned bakeries to large-scale industrial producers supplying supermarkets and restaurants. While demand for baked goods remains steady, bakery owners face financial challenges such as ingredient price fluctuations, equipment costs, labor shortages, and competition from both artisanal and mass-market producers.
This is where SBA Loans for Commercial Bakeries provide critical support. Backed by the U.S. Small Business Administration, SBA loans offer affordable financing with longer repayment terms, lower down payments, and government-backed guarantees. These loans help bakeries invest in ovens, mixers, packaging equipment, facility upgrades, and working capital to sustain operations and growth.
In this article, we’ll explore NAICS 311812, the financial hurdles commercial bakeries face, how SBA loans provide solutions, and answers to frequently asked questions from bakery business owners.
Industry Overview: NAICS 311812
Commercial Bakeries (NAICS 311812) produce a wide variety of baked goods, often serving local markets or national distribution chains. Common offerings include:
- Bread and rolls
- Cakes, pies, and pastries
- Cookies and biscuits
- Gluten-free and specialty baked goods
- Packaged baked snacks for retail distribution
The bakery industry is evolving to meet consumer preferences for healthier, artisanal, and convenient baked goods, requiring continual investment in innovation and marketing.
Common Pain Points in Bakery Financing
From Reddit’s r/Baking, r/FoodManufacturing, and Quora discussions, bakery owners often highlight these financial challenges:
- Ingredient Costs – Flour, sugar, dairy, and specialty ingredients fluctuate in price.
- Equipment Investments – Commercial ovens, mixers, and packaging lines require large capital outlays.
- Labor & Staffing – Recruiting skilled bakers and managing payroll can strain budgets.
- Cash Flow Gaps – Wholesale accounts may delay payments, leaving bakeries covering expenses upfront.
- Competition – Large manufacturers and niche artisanal bakeries pressure margins and market share.
How SBA Loans Help Commercial Bakeries
SBA financing provides affordable, flexible capital to help bakeries stabilize cash flow, expand production, and innovate in response to consumer demand.
SBA 7(a) Loan
- Best for: Working capital, payroll, marketing, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Covers everyday expenses like ingredients, packaging, payroll, and utilities.
SBA 504 Loan
- Best for: Real estate and major equipment purchases.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for purchasing or upgrading facilities, ovens, mixers, and conveyor systems.
SBA Microloans
- Best for: Small or startup bakeries.
- Loan size: Up to $50,000.
- Why it helps: Useful for buying small equipment, initial inventory, or funding marketing campaigns.
SBA Disaster Loans
- Best for: Bakeries impacted by natural disasters or supply chain disruptions.
- Loan size: Up to $2 million.
- Why it helps: Provides funding to replace equipment, repair facilities, or recover lost revenue.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit bakery with good personal credit (typically 650+).
- Prepare Financial Documents – Tax returns, P&L statements, supplier invoices, and customer contracts.
- Find an SBA-Approved Lender – Some lenders specialize in food manufacturing and retail businesses.
- Submit Application – Provide a business plan with product lines, distribution channels, and financial forecasts.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days.
FAQ: SBA Loans for Commercial Bakeries
Why do banks often deny loans to bakeries?
Banks may see bakeries as risky due to high ingredient costs, thin margins, and reliance on wholesale clients. SBA guarantees reduce this risk, making approval more likely.
Can SBA loans finance ovens, mixers, and packaging equipment?
Yes. SBA 7(a) and 504 loans can fund large bakery equipment, packaging systems, and facility upgrades.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional loans.
Are startup bakeries eligible?
Yes. Startups with recipes, a solid business plan, and market demand may qualify for SBA loans.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real estate: Up to 25 years
Can SBA loans support expansion into new retail or wholesale markets?
Absolutely. Many bakeries use SBA financing to expand into grocery stores, foodservice channels, or e-commerce sales.
Final Thoughts
The Commercial Bakeries industry is a cornerstone of the food supply chain but faces challenges from ingredient costs, equipment expenses, and competitive pressures. SBA Loans for Bakeries provide affordable, flexible financing to cover operations, expand capacity, and strengthen market position.
Whether you’re launching a small artisan bakery or scaling a commercial production facility, SBA financing can provide the resources you need to grow. Connect with an SBA-approved lender today and explore your options for funding success in the bakery industry.
Filters
Tags
#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
#Export Express
#7a with WCP
#Contract Loan Line of Credit (CAPLine)
#7a with EWCP
#Preferred Lenders with WCP
#Preferred Lenders with EWCP
#Seasonal Line of Credit (CAPLine)
#Builders Line of Credit (CAPLine)