GLCF’s Fiscal Year 2026 Economic Development Incentive Program

Building on last year’s momentum, when GLCF returned over $110,000 to lenders to support small businesses through our FY 2025 Economic Development Incentive Program, we are proud to launch our FY 2026 Economic Development Incentive Program, which aligns with SBA fee relief and is specifically designed to support manufacturers in Michigan and authorized counties in Indiana and Ohio.

This program follows the SBA’s September 18 guidance and Information Notice 5000 871532, which waives fees for 504 loans to manufacturers (NAICS Sectors 31 through 33) approved in fiscal year 2026.

How the Program Works:

For eligible SBA 504 loans involving manufacturers, including loans under the 504 Debt Refinance with or without Expansion programs, both the upfront guaranty fee and annual service fee will be waived. This reduces barriers to capital and allows manufacturers to reinvest directly in their operations.

To complement these SBA reductions, GLCF offers a Targeted Incentive for Manufacturers:

• We will reimburse 50% of the third-party lender fee, up to $5,000

• Applies to 504 loans approved between October 1, 2025, and September 30, 2026

• Can be used by lenders to waive fees, cover professional costs, or support other borrower-related expenses

Eligibility and Submission:

• Available to manufacturers (NAICS Sectors 31 through 33)  located in Michigan and authorized counties in Indiana and Ohio

• No minimum SBA 504 loan amount

• Available through September 30, 2026

• Guaranteed for all SBA 504 applications approved by September 30, 2026

• To ensure timely processing, all projects must be submitted to GLCF no later than August 29, 2026.  Submissions received after this date may not be eligible for the incentive program. Early submission ensures thorough review, eligibility verification, and collection of any additional information needed.

Example of Combined Savings – $2,000,0000 Total Project:

Through the FY 2026 Manufacturer Incentive Program, a typical $2,000,000 project can generate $6,500 in upfront fee savings when combining GLCF’s lender fee incentive with the SBA guarantee fee waiver. On top of that, the SBA waiver on the ongoing fee lowers the fully effective interest rate from 6.01% to 5.85%, providing manufacturers with additional long-term savings and freeing up capital to reinvest in their operations.

Example of Combined Savings – $4,000,0000 Total Project:

For a $4,000,000 project, the FY 2026 Manufacturer Incentive Program can provide $13,000 in upfront fee savings when combining GLCF’s lender fee incentive (capped at $5,000) with the SBA guarantee fee waiver. Additionally, the SBA waiver on the ongoing fee lowers the fully effective interest rate from 6.01% to 5.85%, giving manufacturers significant long-term savings and freeing up capital to reinvest in their operations.

Key Benefits: