By Paul Long
The Small Business Administration has quietly introduced one of the most consequential updates to its lending programs in years — and it’s aimed squarely at strengthening America’s food supply chain. Through an expansion of the International Trade Loan (ITL) program, the SBA is now offering 90% federal guarantees (up from the standard 75%) for loans supporting businesses across nearly every stage of food production, processing, distribution, and retail.
This shift isn’t just a technical adjustment. It meaningfully reduces lender risk, opens the door for more flexible capital, and positions thousands of food‑related businesses to access financing that may have previously been out of reach.
Why This Matters: A 90% guarantee dramatically alters how lenders evaluate risk. For banks and credit unions it means lenders are more willing to lend to industries with tight margins or volatile input costs and for borrowers, it means easier access to capital, potentially better terms and more financing options for growth or modernization.
Who Qualifies? More Businesses Than You Might Expect. The SBA has identified a broad set of NAICS codes that qualify for the enhanced 90% guarantee, including:
- Grain farming
- Cattle, poultry, and livestock production
- Aquaculture and commercial fishing
- Dairy product manufacturing
- Grocery wholesalers and retailers
- Farm supply stores
- Refrigerated warehousing and storage
- Specialized freight trucking (supporting food logistics)
See the full detailed list at: https://www.sba.gov/article/2026/03/27/sba-announces-grocery-guarantee-promote-affordability
Please note that Restaurants are not a part of this list and are not qualified.
Flexibility: One of the most important aspects of this update is that businesses outside the listed NAICS codes may still qualify. If a company can demonstrate that it has been negatively affected by tariffs, oil prices, inflation, or foreign competition, it may still be eligible for the 90% guarantee. That opens the door for Packaging companies, Equipment suppliers, Cold‑chain logistics providers, Import/export intermediaries and Food‑adjacent manufacturers. This flexibility makes the program far more inclusive than it appears at first glance.
Key details to consider regarding business acquisition under this new program: Changes of ownership are not eligible unless the transaction involves a business that has operated for at least two full fiscal years and is expanding through acquisition within the same NAICS code, a partial change of ownership where proceeds are used to purchase some or all owner interests and at least one original owner remains, or a change of ownership where proceeds are used by current employees, including ESOP transactions, to purchase some or all owner interests.
The food supply chain has faced unprecedented pressure in recent years due to Global disruptions, inflationary spikes, labor shortages and volatile commodity prices.
By expanding this program, the SBA is effectively saying: “If your business helps feed America, we want to help you grow.”
