Seafood Product Preparation and Packaging

311710

JPMorgan Chase Bank, National Association (OH)

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Average SBA Loan Rate over Prime (Prime is 7%) 3.56

Change of Ownership

Existing or more than 2 years old

Fixed Rates

SBA Loans for Seafood Product Preparation and Packaging: Financing Growth in Food Processing

Introduction

Seafood product preparation and packaging businesses are responsible for processing, freezing, canning, and packaging fish, shellfish, and other seafood products for retail, wholesale, and export markets. Classified under NAICS 311710 – Seafood Product Preparation and Packaging, this industry supports both domestic and global food supply chains. While demand for healthy and sustainable seafood continues to rise, companies in this field face unique challenges such as volatile raw material costs, strict regulatory compliance, high labor needs, and capital-intensive equipment investments.

This is where SBA Loans for Seafood Processors and Packers can help. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help businesses finance refrigeration and packaging equipment, expand processing plants, fund working capital, and support sustainability initiatives.

In this article, we’ll explore NAICS 311710, the financial challenges seafood businesses face, how SBA loans provide solutions, and answers to frequently asked questions from industry operators.

Industry Overview: NAICS 311710

Seafood Product Preparation and Packaging (NAICS 311710) businesses typically engage in:

Freezing and packaging fresh seafood
Canning fish and shellfish products
Processing fillets, steaks, and ready-to-cook seafood
Developing value-added products like breaded shrimp or smoked salmon
Exporting packaged seafood products to international markets

This sector is heavily regulated for food safety and sustainability, requiring constant investments in compliance, technology, and quality control.

Common Pain Points in Seafood Processing Financing

Based on insights from Reddit’s r/fishingindustry, r/foodprocessing, and Quora, seafood processors often highlight these challenges:

Raw Material Costs – Prices for fish and shellfish fluctuate with supply, seasonality, and global demand.
Capital-Intensive Equipment – Freezers, canning lines, and packaging systems require major investments.
Labor Shortages – Recruiting and training workers for processing plants can be difficult.
Regulatory Compliance – Food safety (FDA, USDA) and sustainability standards increase costs.
Cash Flow Gaps – Large contracts with retailers or exporters may involve delayed payments.

How SBA Loans Help Seafood Preparation and Packaging Businesses

SBA financing provides affordable, flexible capital that allows seafood processors to modernize plants, secure supply, and expand distribution.

SBA 7(a) Loan

Best for: Working capital, payroll, or raw material purchases
Loan size: Up to $5 million
Why it helps: Provides liquidity to manage supplier contracts and daily operations

SBA 504 Loan

Best for: Facilities, refrigeration systems, or packaging lines
Loan size: Up to $5.5 million
Why it helps: Ideal for investing in large-scale equipment and plant expansions

SBA Microloans

Best for: Small or startup seafood processors
Loan size: Up to $50,000
Why it helps: Useful for initial equipment, licensing, or small-batch packaging

SBA Disaster Loans

Best for: Firms impacted by natural disasters, supply chain disruptions, or economic downturns
Loan size: Up to $2 million
Why it helps: Provides recovery funds for facility repairs, lost revenue, or emergency expenses

Step-by-Step Guide to Getting an SBA Loan

Check Eligibility – Must be a U.S.-based, for-profit business with good personal credit (typically 650+)
Prepare Financial Documents – Include tax returns, P&L statements, supplier agreements, and equipment quotes
Find an SBA-Approved Lender – Some lenders specialize in food processing and manufacturing
Submit Application – Provide a business plan detailing sourcing, compliance strategy, and growth opportunities
Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days

FAQ: SBA Loans for Seafood Preparation and Packaging

Why do banks often deny loans to seafood processors?

Banks may view them as risky due to commodity price volatility, compliance requirements, and seasonal demand. SBA guarantees reduce this risk and improve approval chances.

Can SBA loans finance refrigeration and canning equipment?

Yes. SBA 7(a) and 504 loans can fund freezers, canning lines, packaging machinery, and plant expansions.

What down payment is required?

SBA loans typically require 10–20% down, compared to 25–30% for traditional financing.

Are startup seafood processors eligible?

Yes. Entrepreneurs with supply agreements or retail 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/plants: Up to 25 years

Can SBA loans support sustainability and eco-certifications?

Absolutely. Many seafood companies use SBA financing to pursue eco-label certifications, improve waste management, and invest in sustainable packaging.

Final Thoughts

The Seafood Product Preparation and Packaging industry is a vital part of the U.S. food supply chain but faces financial hurdles tied to raw material costs, labor, and compliance. SBA Loans for Seafood Processors provide affordable, flexible financing to stabilize operations, expand production, and invest in sustainable practices.

Whether you specialize in canning, freezing, or value-added seafood products, SBA financing can help scale your operations. Connect with an SBA-approved lender today and explore your funding options under NAICS 311710.

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