Other Animal Aquaculture

112519

Apply Today!

Newtek Bank, National Association (FL)

Explore Newtek Bank for cutting-edge, seamless digital banking. Your gateway to innovative financial solutions.

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

Change of Ownership

Existing or more than 2 years old

Loan Funds will Open Business

SBA Loans for Other Animal Aquaculture

Introduction

Other animal aquaculture businesses are vital to the U.S. food and agricultural system, raising aquatic animals such as shellfish, ornamental fish, crustaceans, frogs, and other non-finfish species. These operations support local economies, contribute to food security, and meet the growing demand for sustainable seafood and specialty aquatic products. However, aquaculture is capital-intensive and highly sensitive to environmental factors, making financing a constant challenge for small operators.

SBA Loans for Other Animal Aquaculture provide affordable, flexible financing options that allow farmers to invest in hatcheries, tanks, feed systems, biosecurity measures, and expansion projects. With government-backed guarantees, SBA loans reduce lender risk, giving aquaculture businesses greater access to the capital they need to thrive.

Industry Overview: NAICS 112519

NAICS 112519 covers establishments primarily engaged in farming aquatic animals other than finfish. This includes shellfish (like clams and oysters), crustaceans (such as shrimp and crayfish), ornamental fish, frogs, and other specialty aquaculture species. Demand for sustainable seafood, pet trade species, and eco-friendly farming methods has increased significantly, creating opportunities for small aquaculture businesses to grow.

Yet, aquaculture faces major challenges such as disease management, regulatory compliance, fluctuating market prices, and heavy upfront infrastructure costs. Access to financing is critical for farmers to remain competitive and meet rising consumer demand.

Key Financing Challenges in Animal Aquaculture

Insights from aquaculture forums, agricultural finance reports, and small farm owner experiences show the most common financial challenges include:

High Startup Costs – Hatcheries, tanks, ponds, filtration systems, and water management facilities require large upfront investments.
Feed and Operating Expenses – Feed represents one of the largest recurring costs for aquaculture businesses.
Disease and Biosecurity Risks – Disease outbreaks can devastate stock, requiring investment in prevention and treatment systems.
Regulatory Compliance – Water quality testing, permits, and environmental regulations add to costs.
Market Volatility – Prices for seafood, shellfish, and ornamental species fluctuate based on consumer demand and imports.

How SBA Loans Support Animal Aquaculture Businesses

SBA loan programs are designed to help small and mid-sized businesses manage high capital needs and operational challenges. Here’s how they apply to aquaculture:

SBA 7(a) Loan

Best for: Working capital, refinancing, feed purchases, and equipment.
Loan size: Up to $5 million.
Why it helps: Provides cash flow for seasonal operations, feed, payroll, and smaller upgrades.

SBA 504 Loan

Best for: Facilities, ponds, tanks, and major infrastructure.
Loan size: Up to $5.5 million.
Why it helps: Ideal for constructing hatcheries, expanding aquaculture farms, or installing water filtration and treatment systems.

SBA Microloans

Best for: Small aquaculture startups or niche producers.
Loan size: Up to $50,000.
Why it helps: Useful for buying small tanks, nets, water testing equipment, or feed supplies.

SBA Disaster Loans

Best for: Recovery from natural disasters or disease outbreaks.
Loan size: Up to $2 million.
Why it helps: Helps aquaculture farms rebuild, replace lost stock, and stabilize operations after unexpected disruptions.

Step-by-Step Guide to Securing an SBA Loan

Check Eligibility – Must be a U.S.-based small business with repayment ability and typically a 650–680+ credit score.
Prepare Documentation – Financial statements, permits, environmental compliance records, and production forecasts.
Select an SBA-Approved Lender – Choose lenders familiar with agricultural and aquaculture businesses.
Submit Application – Provide a detailed business plan showing how loan funds will improve sustainability and growth.
Approval Process – SBA guarantees up to 85% of the loan, and approvals typically take 30–90 days.

FAQ: SBA Loans for Other Animal Aquaculture

Q: Can SBA loans be used to build ponds or hatcheries?

Yes. SBA 504 loans are ideal for funding large-scale infrastructure like ponds, hatcheries, and water treatment systems.

Q: Can SBA loans cover feed and daily operational costs?

Absolutely. SBA 7(a) loans provide working capital to manage recurring expenses such as feed, utilities, and labor.

Q: How much down payment is required for SBA loans?

Most SBA loans require 10–20% down, making them more accessible than traditional farm financing.

Q: Are new aquaculture startups eligible for SBA financing?

Yes. Startups may qualify with a solid business plan, collateral, and relevant aquaculture experience.

Q: What repayment terms are available?

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

Q: Can SBA loans help after disease outbreaks or environmental losses?

Yes. SBA disaster loans provide funding to recover from stock losses, natural disasters, or unexpected emergencies.

Final Thoughts

The animal aquaculture industry is an important contributor to U.S. food systems and specialty markets, but it faces high costs, regulatory hurdles, and environmental risks. SBA Loans for Other Animal Aquaculture give small and mid-sized businesses the capital support they need to invest in infrastructure, manage operating expenses, and expand production.

Whether you’re starting a specialty aquaculture farm, modernizing existing facilities, or recovering from unexpected challenges, SBA financing can provide the resources you need to grow sustainably. Connect with an SBA-approved lender today to explore your options.

Filters

Featured