Motorcycle, Bicycle, and Parts Manufacturing
336991
Live Oak Banking Company (NC)
JPMorgan Chase Bank, National Association (OH)
SBA Loans for Motorcycle, Bicycle, and Parts Manufacturing: Powering Growth in a Competitive Market
Introduction
The motorcycle and bicycle industry continues to thrive as consumers seek eco-friendly transportation, recreational rides, and aftermarket parts for customization. Yet, small manufacturers in this space face steep challenges, including high equipment costs, supply chain disruptions, and competition from large global brands. Traditional lenders often hesitate to finance small manufacturers because of industry volatility and capital-intensive production.
This is where SBA Loans for Motorcycle, Bicycle, and Parts Manufacturing step in. Backed by the U.S. Small Business Administration, SBA loans provide manufacturers with affordable financing options to invest in equipment, manage cash flow, and compete in an evolving marketplace.
Industry Overview: NAICS 336991
Motorcycle, Bicycle, and Parts Manufacturing (NAICS 336991) includes companies that build motorcycles, bicycles, scooters, and related parts or accessories. Businesses in this category range from boutique custom bike builders to suppliers producing frames, tires, and aftermarket components.
The industry supports both recreational markets and practical commuting solutions. Growth in e-bikes, electric motorcycles, and sustainable mobility has opened new opportunities, but these trends require significant capital investment in research, development, and production facilities.
Common Financing Pain Points in Motorcycle, Bicycle, and Parts Manufacturing
From Reddit discussions in r/Manufacturing and Quora insights, here are the most common financial challenges small manufacturers face:
- High Capital Investment – CNC machines, welding equipment, and robotics systems are expensive, often requiring six-figure investments.
- Supply Chain Disruptions – Delays in steel, aluminum, carbon fiber, and imported parts create cash flow bottlenecks.
- R&D Costs – Developing new models, especially e-bikes or lightweight motorcycles, demands upfront spending on design and testing.
- Bank Rejections – Many banks shy away from manufacturing loans due to industry-specific risks and collateral requirements.
- Scaling Challenges – Meeting large retail or wholesale orders often requires hiring staff and expanding facilities—difficult without financing.
How SBA Loans Help Motorcycle, Bicycle, and Parts Manufacturers
SBA financing bridges the gap by offering flexible terms, lower down payments, and government-backed guarantees that reduce lender risk.
SBA 7(a) Loan
- Best for: Working capital, equipment, business expansion.
- Loan size: Up to $5 million.
- Why it helps: Covers production equipment, payroll, or supplier contracts.
SBA 504 Loan
- Best for: Real estate, large-scale equipment, and factory upgrades.
- Loan size: Up to $5.5 million.
- Why it helps: Perfect for expanding a facility, adding manufacturing lines, or purchasing heavy machinery.
SBA Microloans
- Best for: Startups or small upgrades.
- Loan size: Up to $50,000.
- Why it helps: Great for small tool purchases, marketing efforts, or e-bike pilot runs.
SBA Disaster Loans
- Best for: Recovery from disasters that damage manufacturing facilities.
- Loan size: Up to $2 million.
- Why it helps: Provides quick access to capital to replace damaged inventory or restart production after floods, fires, or storms.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, legally registered manufacturing business with a credit score typically in the 650–680 range.
- Prepare Financial Documents – Include tax returns, income statements, balance sheets, and detailed cost projections for equipment or R&D.
- Find an SBA-Approved Lender – Seek lenders experienced in manufacturing loans for faster processing.
- Submit Application – Highlight revenue potential, contracts with retailers, and market growth opportunities.
- Approval Process – SBA guarantees up to 85% of loans, making lenders more willing to approve. Typical timeline: 30–90 days.
FAQ: SBA Loans for Motorcycle, Bicycle, and Parts Manufacturing
Why do manufacturers struggle to get traditional financing?
Banks view the industry as risky due to high equipment costs and reliance on supply chains. SBA guarantees reduce these risks, improving approval chances.
Can SBA loans fund equipment purchases?
Yes. SBA 7(a) and 504 loans are commonly used to finance machinery, robotics, or custom fabrication equipment.
Are startups in the motorcycle and bicycle industry eligible?
Yes, though lenders may require a strong business plan, technical expertise, and collateral.
Can SBA loans support R&D for electric bikes or motorcycles?
Absolutely. SBA loans can fund innovation, design, and prototype development, helping smaller manufacturers stay competitive in the green mobility trend.
How long are SBA loan repayment terms?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real estate: Up to 25 years
Can SBA loans be used to expand a factory or hire employees?
Yes. SBA loans can cover facility expansions, new production lines, or payroll to support larger contracts.
Final Thoughts
The motorcycle, bicycle, and parts manufacturing industry is driven by innovation and consumer demand, but small businesses often lack the capital to compete with global brands. SBA Loans for Motorcycle, Bicycle, and Parts Manufacturing provide affordable financing that helps manufacturers invest in equipment, facilities, and research while managing cash flow.
Whether you’re building motorcycles, producing bicycles, or manufacturing aftermarket parts, SBA financing can give your company the resources it needs to grow. Explore SBA loan programs today and power your manufacturing business toward long-term success.
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#Preferred Lenders Program
#SBA Express Program
#Existing or more than 2 years old
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#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
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#Seasonal Line of Credit (CAPLine)
#Builders Line of Credit (CAPLine)