rewrite this title SBA Manufacturers’ Access to Revolving Credit (MARC) Loans – NerdWallet

Small manufacturers looking for flexible funding will soon have a new option: MARC (Manufacturers’ Access to Revolving Credit) loans from the U.S. Small Business Administration. MARC loans provide the same large funding amounts, competitive interest rates and long repayment terms as other SBA loans, but stand out by offering term loans and revolving lines of credit.

You must also have a debt service coverage ratio equal to or greater than 1.0 based on past financial performance — or if you’re a new business relying on projections — you must reach a ratio of at least 1.0 within two years of loan disbursement. In simple terms, this means your business needs to bring in enough cash to cover at least 100% of your loan payments.

In addition to these MARC-specific rules, you’ll need to meet the standard set of SBA loan requirements, including:

The SBA doesn’t set specific qualifications for credit score, time in business or annual revenue. Instead, your lender will set those requirements. Generally speaking, however, it’s helpful to have good credit, strong revenue and at least two years in business.

You apply for an SBA MARC loan through a participating SBA lender, like a bank or credit union. If you already have a relationship with a financial institution, start by asking if it offers this type of SBA loan.

What you’ll need to apply:

Once you’ve submitted your application, the underwriting, approval and closing processes can take anywhere from 30 to 90 days. SBA preferred lenders may offer faster processing times, as they can approve and issue loans without SBA review.

Not sure if an SBA MARC loan is right for your business? You still have options. Here are a few other types of financing to consider:

If your business isn’t in manufacturing or you need financing for more than working capital, an SBA Express loan might be a good fit. Express loans are available to a wide variety of small businesses and can be used for working capital, purchasing equipment or real estate, as well as refinancing debt.

Like SBA MARC loans, Express loans are available as either term loans or lines of credit, with competitive rates and repayment terms. However, the maximum loan amount is capped at $500000.

Express loans can fund faster than other SBA loans, since lenders can issue them without SBA approval (similar to the way preferred lenders operate). Plus, because these loans are a long-standing part of the 7(a) program, you’ll likely find more lenders that offer them as opposed to the new MARC option.

SBA microloans are aimed at helping businesses that may have a harder time qualifying for other types of financing. That makes them a good option for companies that may not qualify for an SBA MARC loan.

These loans are issued by approved intermediaries, typically nonprofit and community lenders, which tend to have flexible qualification requirements. These lenders may also offer business training, coaching and other educational resources.

The trade-off is that SBA microloans are smaller — they cap out at $50000. Still, they come with competitive rates and repayment terms, making them a strong choice for newer or smaller businesses.

If speed is your priority, consider online business loans. Some lenders can issue funding as quickly as the same day you apply.

These lenders also tend to have flexible qualification requirements, making them a good option for startups and borrowers with bad credit. As a result of their speed and flexibility, however, these loans often have higher interest rates and shorter repayment terms.