Other Aircraft Parts and Auxiliary Equipment Manufacturing
336413
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Celtic Bank Corporation (UT)
Bank of America, National Association (NC)
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SBA Loans for Other Aircraft Parts and Auxiliary Equipment Manufacturing: Financing Growth in Aerospace Supply Chains
Introduction
Aircraft parts and auxiliary equipment manufacturers play a critical role in the aerospace industry by producing specialized components used in commercial, military, and private aviation. Classified under NAICS 336413 – Other Aircraft Parts and Auxiliary Equipment Manufacturing, this sector includes businesses that manufacture landing gear, flight control systems, fuel systems, auxiliary power units, and other non-engine parts essential for aircraft operation and safety. While demand for air travel and defense spending supports industry growth, manufacturers face financial challenges such as high R&D costs, stringent regulatory compliance, supply chain delays, and global competition.
This is where SBA Loans for Aerospace Manufacturers can provide crucial support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help manufacturers invest in research, upgrade facilities, purchase precision equipment, and stabilize cash flow while navigating complex aerospace contracts.
In this article, we’ll explore NAICS 336413, the financial challenges aerospace parts manufacturers face, how SBA loans provide solutions, and answers to frequently asked questions from aviation industry business owners.
Industry Overview: NAICS 336413
Other Aircraft Parts and Auxiliary Equipment Manufacturing (NAICS 336413) includes businesses that produce:
- Landing gear and control systems
- Fuel systems, hydraulics, and pneumatics
- Auxiliary power units and avionics support equipment
- Aircraft lighting, safety, and environmental systems
- Specialized aerospace components for defense and commercial aviation
This industry is technology-driven and heavily regulated, requiring manufacturers to maintain certifications and meet strict safety standards.
Common Pain Points in Aerospace Parts Manufacturing Financing
From Reddit’s r/aerospace, r/manufacturing, and Quora discussions, manufacturers often highlight these challenges:
- High R&D Costs – Developing lightweight, fuel-efficient, and compliant parts requires ongoing innovation.
- Regulatory Compliance – FAA, DoD, and international aviation standards require certifications and audits.
- Supply Chain Disruptions – Shortages in metals, electronics, and composites delay production.
- Skilled Workforce Shortages – Recruiting engineers and technicians adds payroll strain.
- Long Contract Cycles – Aerospace contracts may take years to finalize, delaying revenue recognition.
How SBA Loans Help Aircraft Parts Manufacturers
SBA financing provides affordable, flexible capital that helps aerospace suppliers invest in compliance, expand production, and remain competitive globally.
SBA 7(a) Loan
- Best for: Working capital, payroll, or compliance expenses
- Loan size: Up to $5 million
- Why it helps: Provides liquidity for staffing, certifications, and contract-related costs
SBA 504 Loan
- Best for: Manufacturing facilities, clean rooms, or precision machinery
- Loan size: Up to $5.5 million
- Why it helps: Ideal for upgrading facilities, CNC equipment, and aerospace-grade testing labs
SBA Microloans
- Best for: Small or startup aerospace suppliers
- Loan size: Up to $50,000
- Why it helps: Useful for certifications, small tools, or marketing to secure contracts
SBA Disaster Loans
- Best for: Firms impacted by supply chain breakdowns or economic downturns
- Loan size: Up to $2 million
- Why it helps: Provides recovery funds for disrupted contracts or damaged facilities
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit aerospace manufacturer with good personal credit (typically 650+)
- Prepare Financial Documents – Include tax returns, P&L statements, supplier contracts, and compliance costs
- Find an SBA-Approved Lender – Some lenders specialize in aerospace and manufacturing financing
- Submit Application – Provide a business plan highlighting production capacity, certifications, and market demand
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval generally takes 30–90 days
FAQ: SBA Loans for Aerospace Parts Manufacturing
Why do banks often deny loans to aircraft parts manufacturers?
Banks may view aerospace firms as risky due to high R&D costs, compliance expenses, and long contract cycles. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance precision equipment and testing facilities?
Yes. SBA 7(a) and 504 loans can fund CNC machines, clean rooms, testing systems, and factory expansions.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional manufacturing financing.
Are startup aerospace suppliers eligible?
Yes. Entrepreneurs with technical expertise and government contracts may qualify for SBA microloans or 7(a) financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/manufacturing plants: Up to 25 years
Can SBA loans support defense and aerospace contracts?
Absolutely. Many suppliers use SBA financing to meet defense procurement requirements and commercial aviation standards.
Final Thoughts
The Other Aircraft Parts and Auxiliary Equipment Manufacturing industry is vital to the aerospace supply chain but faces financial hurdles tied to compliance, innovation, and contract cycles. SBA Loans for Aerospace Manufacturers provide affordable, flexible financing to stabilize operations, expand production, and secure government and commercial contracts.
Whether you manufacture landing gear, avionics support systems, or auxiliary components, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 336413.
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