Ship Building and Repairing
336611
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SBA Loans for Ship Building and Repairing: Financing Growth in Marine Manufacturing and Services
Introduction
Ship building and repairing businesses design, construct, and maintain vessels used for commercial, military, and recreational purposes. Classified under NAICS 336611 – Ship Building and Repairing, this industry includes shipyards, dry docks, and repair facilities that support everything from cargo ships and tankers to ferries, fishing boats, and yachts. With demand driven by global trade, naval defense, and marine recreation, this sector is vital to the U.S. economy. However, businesses face challenges such as high capital costs, labor shortages, fluctuating material prices, and strict regulatory requirements.
This is where SBA Loans for Ship Builders and Repairers 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 shipyards invest in equipment, expand facilities, hire skilled labor, and stabilize cash flow during long project cycles.
In this article, we’ll explore NAICS 336611, the financial challenges ship building and repair firms face, how SBA loans provide solutions, and answers to frequently asked questions from marine industry business owners.
Industry Overview: NAICS 336611
Ship Building and Repairing (NAICS 336611) includes businesses that work on:
- Commercial cargo vessels
- Military and defense ships
- Passenger ferries and cruise ships
- Fishing and workboats
- Recreational yachts and specialty vessels
This industry is highly capital-intensive and labor-dependent, requiring significant investment in skilled workers, materials, and shipyard infrastructure.
Common Pain Points in Ship Building and Repair Financing
From Reddit’s r/maritime, r/manufacturing, and Quora discussions, shipyard owners often highlight these challenges:
- High Capital Costs – Building and repairing vessels requires cranes, dry docks, welding equipment, and specialized tools.
- Skilled Labor Shortages – Recruiting welders, naval engineers, and marine electricians adds payroll strain.
- Material Price Volatility – Steel, aluminum, and composites fluctuate in cost, impacting project budgets.
- Long Project Cycles – Large vessel construction or repairs can take months, creating cash flow gaps.
- Regulatory Compliance – Meeting Coast Guard, EPA, and international marine safety standards increases costs.
How SBA Loans Help Ship Building and Repair Businesses
SBA financing provides affordable, flexible capital that helps marine businesses expand, modernize, and remain competitive in a global industry.
SBA 7(a) Loan
- Best for: Working capital, payroll, and supplier payments
- Loan size: Up to $5 million
- Why it helps: Provides liquidity to cover labor, raw materials, and day-to-day operations
SBA 504 Loan
- Best for: Shipyard expansions, dry docks, or heavy equipment
- Loan size: Up to $5.5 million
- Why it helps: Ideal for cranes, fabrication shops, welding lines, and facility improvements
SBA Microloans
- Best for: Small or startup marine businesses
- Loan size: Up to $50,000
- Why it helps: Useful for small tools, certifications, or marketing contracts
SBA Disaster Loans
- Best for: Shipyards impacted by hurricanes, storms, or economic downturns
- Loan size: Up to $2 million
- Why it helps: Provides recovery funds for damaged facilities, vessel losses, or business interruption
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit ship building or repair business with good personal credit (typically 650+)
- Prepare Financial Documents – Include tax returns, P&L statements, supplier contracts, and project pipeline
- Find an SBA-Approved Lender – Some lenders specialize in manufacturing and maritime financing
- Submit Application – Provide a business plan highlighting contracts, production capacity, and regulatory compliance
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval usually takes 30–90 days
FAQ: SBA Loans for Ship Building and Repairing
Why do banks often deny loans to shipyards?
Banks may view ship building as risky due to long project cycles, high equipment costs, and reliance on contracts. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance dry docks and heavy equipment?
Yes. SBA 7(a) and 504 loans can fund cranes, docks, welding systems, and large-scale shipyard expansions.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional marine financing.
Are startup ship repair businesses eligible?
Yes. Entrepreneurs with marine engineering expertise or small repair 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
- Shipyard real estate: Up to 25 years
Can SBA loans support government or defense contracts?
Absolutely. Many shipyards use SBA financing to fulfill U.S. Navy, Coast Guard, or municipal ferry contracts.
Final Thoughts
The Ship Building and Repairing industry is essential for trade, defense, and marine recreation but faces financial hurdles tied to capital intensity, labor, and compliance. SBA Loans for Shipyards provide affordable, flexible financing to stabilize operations, expand facilities, and secure large-scale contracts.
Whether you build cargo vessels, repair ferries, or service yachts, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 336611.
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Tags
#Preferred Lenders Program
#SBA Express Program
#Existing or more than 2 years old
#Startup
#Loan Funds will Open Business
#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
#Contract Loan Line of Credit (CAPLine)
#7a with EWCP
#Preferred Lenders with WCP
#Preferred Lenders with EWCP
#Seasonal Line of Credit (CAPLine)
#Builders Line of Credit (CAPLine)