Nebraska manufacturers, food supply chain companies, and rural businesses have a limited window to access SBA 504 financing without paying an SBA guaranty fee. From October 1, 2026 through September 30, 2027, a 0% SBA guaranty fee applies to qualifying 504 loans, cutting the upfront cost of borrowing and lowering the fixed rate. On a $5 million loan, that adds up to more than $250,000 in savings, and NEDCO can help Nebraska businesses find out if their project qualifies.
What Is the SBA 504 Guaranty Fee?
The SBA 504 loan program pairs a conventional lender, a Certified Development Company like NEDCO, and the borrower to finance fixed assets such as real estate, buildings, and equipment. As part of that structure, the SBA typically charges two guaranty fees: an upfront fee paid at closing and an ongoing annual service fee built into the fixed rate of the loan. The SBA has already confirmed that for fiscal year 2026, 504 loans to manufacturers in NAICS Sectors 31 through 33 have both the upfront guaranty fee and the annual service fee waived entirely. For the period running October 1, 2026 through September 30, 2027, that 0% guaranty fee extends to a broader set of eligible Nebraska borrowers, and NEDCO, as a Certified Development Company, can help determine whether a specific project qualifies.
The 0% Guaranty Fee, By the Numbers
Eliminating both fees changes the math on a 504 loan in two ways:
- 0% Upfront Guaranty Fee: Borrowers bring less money to closing.
- 0% Ongoing Guaranty Fee: The loan carries a lower fixed rate over its full term.
Combined, these savings are substantial. On a $5 million 504 loan, a borrower can save over $250,000 across the life of the loan compared to standard guaranty fee pricing.
Who Qualifies for the 0% Guaranty Fee
The 0% guaranty fee generally applies to three categories of Nebraska businesses:
- Manufacturing: Businesses producing goods made in the U.S. can use 504 financing for equipment purchases and facility expansion projects.
- Food Supply Chain: Food processing, agricultural production, storage, and distribution companies are eligible.
- Rural Businesses: Companies located in qualifying rural communities that support economic development and job creation can also take advantage of the fee waiver.
Why the Timing Matters
SBA guaranty fees reset every fiscal year, and rates have shifted considerably over time. As recently as 2016, the SBA reduced the one-time 504 guaranty fee from 2.65% to 2.15%, and fees have continued to move up and down in the years since as the program’s subsidy costs are recalculated. A full year with no guaranty fee at all is a rare opportunity, and it will not extend automatically past September 30, 2027.
How Nebraska Businesses Can Take the Next Step
For manufacturers, food supply chain companies, and rural businesses planning an expansion, an equipment purchase, or a facility project, this is the year to explore SBA 504 financing. The combination of a 0% upfront fee and a 0% ongoing fee will not be available indefinitely, and project timelines for 504 loans can take time to move through underwriting and closing.
Ready to see how much your business could save? Contact NEDCO today to find out if your project qualifies for the 0% SBA guaranty fee.