SBA Manufacturing Loan | Refinance & Growth Capital for Precision Manufacturer
Debt Consolidation • Equipment Expansion • Working Capital Flexibility
SBA manufacturing loan overview
Refinancing for growth and long-term stability. Cornovus Capital structured an SBA manufacturing loan totaling $1.25 million to refinance existing debt and provide additional working capital for a precision components manufacturer in the Midwest. The transaction consolidated multiple high-interest obligations, funded new equipment purchases, and strengthened operational cash flow to support ongoing expansion.
The SBA manufacturing loan was designed to enhance liquidity, reduce monthly debt obligations, and position the company for sustainable scalability. By leveraging SBA 7(a) terms, Cornovus Capital optimized repayment structure and working capital flexibility—allowing ownership to focus on production efficiency, automation, and long-term business growth.
The transaction adhered to SBA standards under the SBA 7(a) Business Loan Program, with proceeds allocated for refinance, equipment expansion, and operating liquidity.
Challenge
- High monthly payments from short-term debt reducing working capital
- Insufficient liquidity for equipment acquisition and modernization
- Need to consolidate legacy debt under long-term, stable terms
- Desire to strengthen operations with flexible funding for expansion
- Aligning financing with future growth initiatives and staffing plans
Solution
- $1.25 million total financing package
- 10-year amortization with fixed and floating rate options
- Debt service reduction exceeding 30%
- Working capital allocation for equipment and facility upgrades
- Collateral secured by business assets and real estate
- 10% equity injection supporting SBA program compliance
By consolidating debt under one SBA 7(a) structure, Cornovus Capital delivered predictable cash flow and long-term flexibility—enabling reinvestment in workforce development, automation, and market expansion.
Results
- 30% reduction in overall debt service costs
- Improved operating liquidity and debt coverage ratios
- Funding allocated for new CNC machinery and precision tooling
- Enhanced production output and turnaround time
- Expanded regional client base and new manufacturing contracts
Related Capital Programs
Explore additional owner-occupied and growth financing options: SBA 7(a) program, SBA 7(a) 100% program, SBA 504 program, Bridge program, CMBS program, and LifeCo program.
About Cornovus Capital
With over 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability across multiple market cycles.
Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and closing assurance, we guide businesses and investors through complex capital markets environments, securing financing aligned with long-term ownership and investment objectives.
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Connect with Cornovus Capital
Exploring financing options for commercial real estate or business finance? Cornovus Capital delivers institutional execution — combining underwriting precision, credit modeling, and lender coordination to ensure transparency, speed, and certainty from term sheet to closing. Cornovus Capital delivers structured solutions, execution precision, and efficiency from application to closing.
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