Sheer Hosiery Mills

315111

BayFirst National Bank (FL)

Headquartered in St. Petersburg, BayFirst Financial offers personal and business banking services, including checking & savings accounts, loans, and more.

Average SBA Loan Rate over Prime (Prime is 7%) 4.59

Change of Ownership

Existing or more than 2 years old

International Trade Loans

SBA Loans for Hosiery Mills: Financing Growth in Sheer Hosiery Manufacturing

Introduction

Sheer hosiery mills manufacture pantyhose, tights, stockings, and other legwear products that remain staples in the fashion and apparel industry. Classified under NAICS 315111 – Sheer Hosiery Mills, this sector supplies both domestic and international markets with hosiery made from nylon, spandex, and other fine yarns. While the industry benefits from ongoing consumer demand and fashion cycles, businesses face financial challenges such as high equipment costs, competition from imports, and fluctuating raw material prices.

This is where SBA Loans for Hosiery Mills provide critical 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 purchase knitting machines, modernize production lines, expand facilities, and stabilize cash flow in a competitive apparel market.

In this article, we’ll explore NAICS 315111, the financial challenges hosiery mills face, how SBA loans provide solutions, and answers to frequently asked questions about financing in this sector.

Industry Overview: NAICS 315111

Sheer Hosiery Mills (NAICS 315111) include businesses engaged in producing:

Pantyhose, tights, and stockings
Sheer socks and fashion hosiery
Legwear for specialty retail and fashion brands
Private-label hosiery for department stores and online retailers
Elastic hosiery and specialty fabrics for apparel manufacturers

These companies serve fashion retailers, wholesale distributors, and direct-to-consumer markets. Success depends on efficient production, consistent quality, and adaptability to changing fashion trends.

Common Pain Points in Hosiery Manufacturing Financing

From Reddit’s r/manufacturing, r/fashionindustry, and Quora discussions, hosiery manufacturers often cite these financial challenges:

High Equipment Costs – Circular knitting machines, dyeing equipment, and finishing systems require large capital investments.
Raw Material Volatility – Nylon, spandex, and specialty yarn prices fluctuate with global markets.
Inventory Management – Fashion cycles change quickly, leading to risks of unsold inventory.
Global Competition – Imported hosiery often competes on lower prices, putting pressure on U.S. mills.
Marketing & Branding – Building recognition in a competitive retail market requires ongoing investment.

How SBA Loans Help Sheer Hosiery Mills

SBA financing provides affordable, flexible capital to upgrade production, invest in marketing, and strengthen financial stability.

SBA 7(a) Loan

Best for: Working capital, payroll, or refinancing debt.
Loan size: Up to $5 million.
Why it helps: Provides liquidity for raw materials, labor costs, and daily operations.

SBA 504 Loan

Best for: Machinery, factory space, and facility expansion.
Loan size: Up to $5.5 million.
Why it helps: Ideal for purchasing knitting machines, dyeing equipment, or upgrading production lines.

SBA Microloans

Best for: Small or startup hosiery businesses.
Loan size: Up to $50,000.
Why it helps: Covers initial production runs, small equipment, or marketing campaigns.

SBA Disaster Loans

Best for: Businesses affected by supply chain disruptions, natural disasters, or economic downturns.
Loan size: Up to $2 million.
Why it helps: Provides emergency funding to replace equipment, repair facilities, or sustain payroll.

Step-by-Step Guide to Getting an SBA Loan

Check Eligibility – Must be a U.S.-based, for-profit apparel manufacturer with good personal credit (typically 650+).
Prepare Financial Documents – Tax returns, P&L statements, supplier contracts, and sales records.
Find an SBA-Approved Lender – Some lenders specialize in apparel and textile financing.
Submit Application – Provide a business plan with production schedules, customer markets, and growth projections.
Underwriting & Approval – SBA guarantees reduce lender risk. Approval generally takes 30–90 days.

FAQ: SBA Loans for Hosiery Mills

Why do banks often deny loans to hosiery manufacturers?

Banks may consider hosiery mills risky due to fashion volatility, high equipment costs, and global competition. SBA guarantees lower risk, making approvals more likely.

Can SBA loans cover knitting machines and factory expansions?

Yes. SBA 7(a) and 504 loans can finance specialized hosiery equipment, facility renovations, and large-scale expansion projects.

What down payment is required?

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

Are startup hosiery businesses eligible?

Yes. With supplier relationships, a strong business plan, and market demand, startups can qualify for SBA financing.

What repayment terms are available?

Working capital: Up to 7 years
Equipment/facility upgrades: Up to 10 years
Real estate/factories: Up to 25 years

Can SBA loans help expand into e-commerce or private-label manufacturing?

Absolutely. Many hosiery mills use SBA loans to launch online sales, build direct-to-consumer channels, or expand into private-label partnerships with retailers.

Final Thoughts

The Sheer Hosiery Mills sector is a vital part of U.S. apparel manufacturing but faces pressures from capital needs, imports, and changing consumer demand. SBA Loans for Hosiery Mills provide affordable financing to modernize operations, expand market reach, and stabilize cash flow.

Whether you’re producing pantyhose, tights, or fashion hosiery, SBA financing can provide the resources you need to compete and grow. Connect with an SBA-approved lender today to explore funding opportunities for your hosiery business.

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