The SBA Manufacturing Assistance Revolving Credit (MARC) loan program is a specialized lending initiative designed to support small manufacturers with revolving lines of credit. For Texas manufacturers — a sector that contributes over $240 billion annually to the state’s GDP — the MARC program addresses a persistent challenge: accessing flexible working capital to manage materials costs, production cycles, and supply chain fluctuations.
What Is the SBA MARC Loan
The MARC loan is a revolving credit facility backed by the SBA’s 7(a) guarantee authority. Unlike traditional term loans that provide a lump sum repaid over a fixed schedule, a MARC loan establishes a credit line that manufacturers can draw against, repay, and draw again as their production and procurement cycles require. The revolving structure is designed to match the cash flow patterns common in manufacturing, where raw material purchases, work-in-progress inventory, and accounts receivable create regular working capital needs.
Key Program Features
- SBA guarantee: The SBA guarantees up to 75 percent of the credit line for loans over $150,000 and up to 85 percent for smaller amounts, reducing lender risk and improving approval likelihood.
- Revolving structure: Borrowers can draw and repay funds throughout the loan term, providing ongoing access to working capital rather than a one-time disbursement.
- Use of proceeds: Funds may be used for raw materials, component inventory, work-in-progress financing, labor costs tied to production, and other manufacturing working capital needs.
- Manufacturing focus: The program specifically targets businesses engaged in manufacturing as defined by NAICS codes in the 31-33 range.
- Competitive rates: Interest rates follow SBA 7(a) guidelines, which are typically lower than conventional revolving credit products.
Eligibility Requirements
To qualify for a MARC loan, a business must meet general SBA 7(a) eligibility criteria plus manufacturing-specific requirements:
- Operate as a small business under SBA size standards (varies by specific NAICS code, but generally 500 or fewer employees for most manufacturing categories)
- Be engaged in manufacturing activities (NAICS codes 31-33)
- Be a for-profit business operating in the United States
- Demonstrate the ability to repay the credit facility from business cash flow
- Have exhausted or be unable to obtain conventional revolving credit on reasonable terms
- Be current on all existing federal obligations
How to Apply
- Identify an SBA-approved lender: MARC loans are originated by banks and lenders approved to make SBA 7(a) loans. Use SBA Lender Match at lendermatch.sba.gov to find lenders in your area that handle manufacturing loans.
- Prepare financial documentation: You will need business tax returns (typically 3 years), current financial statements, accounts receivable and inventory aging reports, personal financial statements for all owners with 20 percent or more ownership, and a description of the manufacturing operations.
- Describe your working capital needs: Lenders will want to understand your production cycles, seasonal patterns, typical procurement timelines, and how revolving credit will improve your operations.
- Submit the application: Work with your lender to complete SBA Form 1919 and other required documentation. The lender handles the SBA guarantee application process.
MARC vs. Other SBA Programs
Texas manufacturers have access to several SBA lending programs. The right choice depends on your specific needs:
- MARC: Best for ongoing working capital needs tied to production cycles. Revolving structure matches manufacturing cash flow patterns.
- SBA 7(a): Best for one-time capital needs including equipment, real estate, or business acquisition. 7(a) loan guide.
- SBA 504: Best for major fixed-asset purchases such as buildings, heavy machinery, or production line equipment. 504 loan guide.
Additional Programs for Texas Manufacturers
Texas manufacturers should also consider these complementary programs:
- Manufacturing sales tax exemptions — Texas exempts manufacturing machinery and equipment from state sales tax
- R&D tax credit for manufacturers — federal credit for qualified research activities
- Skills Development Fund — training grants for manufacturing workforce development
- Texas Enterprise Fund — deal-closing grants for major projects
Screen Your Manufacturing Business
The MARC loan is one of many programs available to Texas manufacturers. Our screening report identifies which lending, tax credit, training, and incentive programs may match your manufacturing business. Start your free screening →