Ice Cream and Frozen Dessert Manufacturing
311520
Shoreham Bank (RI)
Shoreham Bank offers Retail Banking, Mortgages, Home Equity Loans, Auto Loans, and much more. Providing our customers with convenience and reliable service since 1959.
Oconee State Bank (GA)
One of the strengths of the bank, is its knowledge of its customers and focus on serving and taking care of its employees, customers, and community.
KeyBank National Association (OH)
Kennebunk Savings Bank (ME)
Kennebunk Savings has 18 locations in Maine and New Hampshire. We're here to make your life easier. Get started with us today or log into your account!
Heritage Bank Inc (KY)
First Internet Bank of Indiana (IN)
First Internet Bank is a leader among online banks, offering industry leading online banking services with competitive rates and great customer service.
First Bank of the Lake (MO)
Eastern Bank (MA)
Community Banks of Colorado, A Division of NBH Bank (CO)
Colony Bank (GA)
Cadence Bank (MS)
BayFirst National Bank (FL)
Headquartered in St. Petersburg, BayFirst Financial offers personal and business banking services, including checking & savings accounts, loans, and more.
SBA Loans for Ice Cream and Frozen Dessert Manufacturing: Financing Growth in a Sweet Industry
Introduction
Ice cream and frozen dessert manufacturers produce some of America’s favorite treats—from traditional ice cream to frozen yogurt, gelato, and dairy-free alternatives. Classified under NAICS 311520 – Ice Cream and Frozen Dessert Manufacturing, this industry combines creativity, food science, and large-scale production. While consumer demand for frozen desserts is strong and growing, manufacturers face financial challenges including high equipment costs, ingredient expenses, and distribution hurdles.
This is where SBA Loans for Ice Cream and Frozen Dessert Manufacturers can make a significant impact. Backed by the U.S. Small Business Administration, SBA loans provide affordable financing with longer repayment terms, lower down payments, and government guarantees. These loans help manufacturers purchase equipment, scale production, hire staff, and expand distribution channels sustainably.
In this article, we’ll explore NAICS 311520, the financial challenges in frozen dessert manufacturing, how SBA loans provide solutions, and frequently asked questions from business owners in the industry.
Industry Overview: NAICS 311520
Ice Cream and Frozen Dessert Manufacturing (NAICS 311520) businesses produce frozen dairy and nondairy products for retail and wholesale markets. Common products include:
- Packaged ice cream and frozen novelties
- Frozen yogurt and sorbet
- Gelato and premium desserts
- Dairy-free and plant-based alternatives
- Private-label frozen dessert production
The industry is highly competitive, with both large national brands and small artisanal producers. Success depends on innovation, product quality, and efficient distribution networks.
Common Pain Points in Manufacturing Financing
From Reddit’s r/FoodBusiness, r/Entrepreneur, and Quora discussions, ice cream and dessert manufacturers often cite these financial struggles:
- High Equipment Costs – Freezers, mixers, pasteurizers, and automated packaging equipment can cost hundreds of thousands of dollars.
- Ingredient Expenses – Milk, cream, flavorings, and specialty ingredients must be purchased in bulk.
- Distribution & Logistics – Cold chain storage and delivery systems require heavy investment.
- Seasonal Revenue – Sales often peak in summer and dip during colder months, creating cash flow gaps.
- Regulatory Compliance – Meeting FDA and USDA food safety standards adds costs for equipment, training, and certifications.
How SBA Loans Help Frozen Dessert Manufacturers
SBA loans offer affordable financing that helps businesses manage expenses, expand production, and remain competitive.
SBA 7(a) Loan
- Best for: Working capital, payroll, marketing, or equipment.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity to purchase ingredients, fund staff, or launch new product lines.
SBA 504 Loan
- Best for: Real estate and large-scale production equipment.
- Loan size: Up to $5.5 million.
- Why it helps: Perfect for building or renovating production facilities and financing automated machinery.
SBA Microloans
- Best for: Small startups or artisanal producers.
- Loan size: Up to $50,000.
- Why it helps: Useful for purchasing small-batch equipment or launching local distribution.
SBA Disaster Loans
- Best for: Businesses affected by natural disasters or unexpected disruptions.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds to replace equipment, restock inventory, or restore facilities.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit business with good credit (typically 650+).
- Prepare Financial Documents – Tax returns, P&L statements, supplier contracts, and food safety certifications.
- Find an SBA-Approved Lender – Some lenders specialize in food and beverage manufacturing businesses.
- Submit Application – A strong business plan with revenue projections and distribution strategy improves approval chances.
- Underwriting & Approval – SBA guarantees reduce lender risk. Expect 30–90 days for processing.
FAQ: SBA Loans for Ice Cream and Frozen Dessert Manufacturing
Why do banks often deny loans to frozen dessert manufacturers?
Traditional lenders see food manufacturing as risky due to seasonal sales and strict regulatory requirements. SBA guarantees lower risk, improving approval odds.
Can SBA loans finance cold storage and production equipment?
Yes. SBA 7(a) and 504 loans can cover freezers, mixers, packaging machines, and refrigerated delivery trucks.
What down payment is required?
SBA loans usually require 10–20% down, compared to 25–30% for conventional loans.
Are startup manufacturers eligible?
Yes. With strong food industry experience, a detailed business plan, and proper certifications, startups can qualify.
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 help expand distribution into grocery chains?
Absolutely. Many frozen dessert manufacturers use SBA financing to secure contracts with regional and national retailers.
Final Thoughts
The Ice Cream and Frozen Dessert Manufacturing industry is thriving, but requires significant investment in equipment, staff, and compliance. SBA Loans for Frozen Dessert Manufacturers provide the affordable, flexible capital needed to scale production and grow revenue.
Whether you’re launching a small artisanal ice cream brand or expanding a large manufacturing operation, SBA financing can help you achieve your goals. Connect with an SBA-approved lender today and explore funding options for your frozen dessert business.
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)