Sporting and Athletic Goods Manufacturing
339920
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SBA Loans for Sporting and Athletic Goods Manufacturing: Financing Growth in Sports and Recreation
Introduction
Sporting and athletic goods manufacturers design and produce the equipment that fuels fitness, recreation, and competitive sports. Classified under NAICS 339920 – Sporting and Athletic Goods Manufacturing, this industry includes companies making products such as balls, bats, golf clubs, exercise machines, protective gear, and outdoor equipment.
While the market for sporting goods benefits from consumer demand for fitness, wellness, and outdoor recreation, manufacturers face significant financial hurdles. High production costs, seasonal demand, and intense competition from imports create ongoing challenges. Traditional lenders may hesitate to finance these businesses due to cyclicality and inventory-heavy operations. That’s where SBA Loans for Sporting and Athletic Goods Manufacturing provide a strong solution, offering lower down payments, extended repayment terms, and government-backed guarantees that reduce lender risk.
Industry Overview: NAICS 339920
Sporting and Athletic Goods Manufacturing (NAICS 339920) covers establishments that produce sporting equipment and athletic gear (excluding apparel and footwear). This includes gym equipment, bicycles, hockey sticks, snowboards, helmets, and camping gear. Customers range from individual consumers to schools, gyms, and professional sports organizations.
The industry has experienced steady growth thanks to rising interest in health, wellness, and outdoor activities. However, competition from large global brands and reliance on seasonal sales cycles make financing essential for smaller and mid-sized manufacturers.
Common Pain Points in Sporting Goods Manufacturing Financing
From Reddit’s r/smallbusiness, industry forums, and Quora, sporting goods manufacturers often cite the following financial challenges:
- High Equipment and Production Costs – Specialized molds, machines, and materials require large upfront investments.
- Seasonal Demand – Sales peak during holidays, back-to-school, or specific sports seasons, creating uneven cash flow.
- Inventory Management – Holding large volumes of unsold goods strains working capital.
- Competition from Imports – Overseas manufacturers often offer lower-cost alternatives.
- Bank Rejections – Traditional lenders may view the industry as risky due to its cyclical and seasonal nature.
How SBA Loans Help Sporting and Athletic Goods Manufacturers
SBA loans give manufacturers access to affordable capital to support production, manage inventory, and expand operations. Here’s how each program applies:
SBA 7(a) Loan
- Best for: Working capital, inventory, product development, or payroll.
- Loan size: Up to $5 million.
- Why it helps: Provides flexible funding to cover seasonal cash flow gaps, purchase raw materials, or expand product lines.
SBA 504 Loan
- Best for: Facilities, warehouses, or large-scale manufacturing equipment.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for expanding production plants, investing in automation, or building distribution centers.
SBA Microloans
- Best for: Startups or niche sporting goods producers.
- Loan size: Up to $50,000.
- Why it helps: Covers licensing, certifications, marketing, or small equipment purchases.
SBA Disaster Loans
- Best for: Recovery after natural disasters, supply chain disruptions, or market shocks.
- Loan size: Up to $2 million.
- Why it helps: Provides emergency funding to restore operations and maintain customer commitments.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Business must be a U.S.-based, for-profit operation. A credit score of 650–680+ is typically required.
- Prepare Documentation – Include tax returns, supplier contracts, product catalogs, and sales projections.
- Find an SBA-Approved Lender – Choose lenders with experience in manufacturing or consumer goods financing.
- Submit a Strong Application – Highlight consumer demand trends, partnerships with retailers, and growth potential.
- Approval & Funding – SBA guarantees reduce lender risk, with approval times usually 30–90 days.
FAQ: SBA Loans for Sporting and Athletic Goods Manufacturing
Why do traditional banks hesitate to finance sporting goods manufacturers?
Because of seasonal demand, high inventory costs, and competition from imports, banks often view the industry as risky. SBA guarantees make financing more accessible.
Can SBA loans cover product development and testing?
Yes. SBA 7(a) loans can fund research, design, and testing of new sporting equipment and gear.
How much of a down payment is required?
Most SBA loans require 10–20% down, which is more affordable than conventional loans.
Are startup sporting goods manufacturers eligible?
Yes. Startups can qualify, especially with a strong business plan and clear distribution strategy.
What are typical SBA loan terms?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real estate/facilities: Up to 25 years
Can SBA loans help with marketing and brand growth?
Absolutely. SBA financing can support advertising campaigns, influencer partnerships, and e-commerce expansion to increase market share.
Final Thoughts
The sporting and athletic goods manufacturing industry drives fitness, wellness, and recreation, but financial challenges often hold businesses back. SBA Loans for Sporting and Athletic Goods Manufacturing provide affordable, flexible capital for production, product innovation, and expansion.
Whether you’re scaling up to meet seasonal demand, investing in new product lines, or building e-commerce capabilities, SBA financing offers a reliable path forward. Connect with an SBA-approved lender today to explore your options.
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#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)