Current-Carrying Wiring Device Manufacturing

335931

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Newtek Bank, National Association (FL)

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Average SBA Loan Rate over Prime (Prime is 7%): 3.52

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CDC Small Business Finance Corp. (CA)

Average SBA Loan Rate over Prime (Prime is 7%): 3.01

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Change of Ownership

Existing or more than 2 years old

SBA Loans for Current-Carrying Wiring Device Manufacturing: Financing Growth in Electrical Components

Introduction

Current-carrying wiring device manufacturers produce essential components that power homes, businesses, and industries. Classified under NAICS 335931 – Current-Carrying Wiring Device Manufacturing, this sector includes businesses that manufacture outlets, switches, connectors, plugs, receptacles, and other wiring devices that ensure safe and efficient electrical flow. These products are critical to construction, infrastructure, and consumer electronics. However, manufacturers face steep challenges, including raw material volatility, strict safety regulations, and global competition.

This is where SBA Loans for Current-Carrying Wiring Device Manufacturing can provide a major advantage. 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 manufacturers invest in modern machinery, expand production facilities, hire skilled labor, and manage cash flow while meeting industry demands.

Industry Overview: NAICS 335931

Current-Carrying Wiring Device Manufacturing (NAICS 335931) includes establishments engaged in producing devices that allow electricity to safely pass through electrical systems. Products range from everyday outlets and switches to specialized industrial connectors and wiring devices for heavy-duty applications. These products are used in residential, commercial, and industrial construction projects, as well as in electronics and consumer products.

With ongoing growth in construction, renewable energy, and smart home technology, the industry continues to expand. However, success depends on maintaining compliance with safety standards, investing in efficient production methods, and competing against global manufacturers. SBA loans offer the capital needed to remain competitive and innovative.

Common Pain Points in Wiring Device Manufacturing Financing

From electrical industry forums, small business discussions, and manufacturing reports, companies in this sector frequently highlight the following challenges:

High Equipment Costs – Injection molding machines, stamping equipment, and automated assembly lines require significant capital investment.
Raw Material Volatility – Prices for copper, plastics, and specialty alloys fluctuate, creating budgeting challenges.
Regulatory Compliance – UL certification, OSHA standards, and safety testing demand continuous investment.
Labor & Training – Skilled technicians and engineers are costly to recruit and train.
Global Competition – Lower-cost imports put pricing pressure on domestic producers.
Cash Flow Strains – Extended project timelines and supplier payments can limit liquidity.

How SBA Loans Help Wiring Device Manufacturers

SBA loans provide tailored financing solutions that address the capital needs of this industry:

SBA 7(a) Loan

Best for: Working capital, payroll, raw materials, and smaller equipment purchases.
Loan size: Up to $5 million.
Why it helps: Provides flexible funding for inventory, compliance costs, and day-to-day operations.

SBA 504 Loan

Best for: Large equipment and facility upgrades.
Loan size: Up to $5.5 million.
Why it helps: Perfect for financing stamping presses, automation systems, or new manufacturing plants.

SBA Microloans

Best for: Small-scale or startup manufacturers.
Loan size: Up to $50,000.
Why it helps: Useful for small equipment purchases, workforce training, or marketing efforts.

SBA Disaster Loans

Best for: Recovery from natural disasters, supply chain disruptions, or economic downturns.
Loan size: Up to $2 million.
Why it helps: Provides emergency funding to repair facilities, replace damaged equipment, or stabilize cash flow.

Step-by-Step Guide to Getting an SBA Loan

Check Eligibility – Must be a U.S.-based for-profit manufacturer with a credit score of 650–680+ and repayment ability.
Prepare Documentation – Include tax returns, financial statements, equipment quotes, and compliance certifications.
Find an SBA-Approved Lender – Choose lenders with experience in industrial and manufacturing businesses.
Submit the Application – Clearly outline how the loan will fund equipment, raw materials, or facility expansions.
Approval Process – SBA guarantees up to 85% of the loan, making approvals easier. Approval typically takes 30–90 days.

FAQ: SBA Loans for Current-Carrying Wiring Device Manufacturing

Why do banks hesitate to finance wiring device manufacturers?

Banks often view these businesses as risky due to raw material volatility, regulatory costs, and global competition. SBA guarantees help reduce lender hesitation.

Can SBA loans finance stamping and molding equipment?

Yes. SBA 7(a) and 504 loans are commonly used to purchase presses, molding machines, automation systems, and testing equipment.

What down payment is required?

SBA loans usually require 10–20% down, compared to higher requirements from conventional loans.

Are startups eligible for SBA loans in this sector?

Yes. SBA microloans are particularly useful for startups and small manufacturers entering the electrical components market.

What loan terms are available?

Working capital: Up to 7 years
Equipment: Up to 10 years
Real estate/facilities: Up to 25 years

Can SBA loans support compliance and safety certifications?

Absolutely. Many manufacturers use SBA financing to pay for UL testing, OSHA compliance, and quality assurance systems.

Final Thoughts

The Current-Carrying Wiring Device Manufacturing industry is essential to powering homes, businesses, and industries across the country. Yet, financial challenges like equipment costs, compliance, and global competition can limit growth. SBA Loans for Wiring Device Manufacturing provide the affordable capital needed to invest in machinery, expand facilities, and stabilize operations.

Whether you’re modernizing your assembly line, managing raw material costs, or expanding production, SBA loans give manufacturers the financial strength to compete and succeed. Connect with an SBA-approved lender today to explore your financing options.

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