# SBA Introduces 90% Energy Guarantee for Small Business Financing New loan program targets US energy production and distribution businesses - **Source:** [Small Business Trends](https://brifing.si/source/127319f9-9cc5-40fc-8c5a-f524915e7611) - **Published:** 2026-08-27 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/e20c99f5-138e-4c22-99bc-b0e08bb14df1 ## New Financing Opportunity The U.S. Small Business Administration (SBA) has launched a new 90% guaranteed loan program for energy sector SMEs. This support under the International Trade Loan (ITL) Program covers businesses across the supply chain from crude oil extraction to energy equipment manufacturing. The program aims to increase energy output while reducing costs. SBA Administrator Kelly Loeffler emphasized this step would benefit both businesses and households. ## Loan Guarantee Details The new program offers 90% guarantees for energy sector loans, a significant increase from the standard 75% guarantee under the popular 7(a) Loan Program. The higher guarantee rate encourages lenders to fund more projects. SBA recently implemented similar guarantees for 'Made in America' and grocery sectors, providing $192 million in total funding. This energy guarantee continues SBA's sector-specific support strategy. ## Eligible Industries Businesses in crude petroleum extraction (NAICS 211120), natural gas extraction (211130), bituminous coal mining, various metal ore mining, and support activities for oil and gas operations (213112) can benefit. The comprehensive scope offers flexible financing options across diverse energy sectors. SBA's inclusive list reflects the varied needs of energy businesses, from traditional extraction to support services. ## Benefits for Businesses SMEs can use these guaranteed loans to expand operations, invest in new technologies, or modernize infrastructure. This could improve energy efficiency, lower operational costs, and ultimately increase profitability. The program particularly benefits energy equipment manufacturers and distribution companies. It aims to integrate small businesses into the growing energy economy, creating new opportunities for sector participation. ## Application Process SBA recommends that SMEs and lenders connect with its national team of finance managers for guidance. These specialists help combine ITL loans with other SBA working capital solutions. Successful applications require robust business plans and clear project goals. While bureaucratic hurdles exist, SBA is working to streamline processes. The high guarantee reduces lender risk but thorough evaluations remain time-consuming. ## Economic Impacts Loeffler stated this initiative would fuel long-term economic growth and household savings. The program is expected to boost US energy production capacity, with cost reductions benefiting consumers. SBA's sectoral guarantees aim to support post-pandemic recovery. Job creation in the energy sector is another anticipated outcome. The program aligns with broader economic revitalization efforts. ## Potential Challenges Regulatory complexities and bureaucratic hurdles may still pose obstacles. SMEs need to present detailed financial projections to secure funding. Lender risk perception remains a factor for certain projects. While SBA's high guarantee mitigates risk, credit evaluation processes can be lengthy. Some businesses might find eligibility criteria restrictive, particularly newer energy ventures. ## Sector Significance The 90% Energy Guarantee represents a milestone for energy SMEs. This support could strengthen small-scale energy producers and suppliers in the market. The program is expected to enhance energy security and may encourage renewable energy investments. SBA's move provides growth opportunities for innovative energy SMEs, potentially reshaping competitive dynamics in the sector. ## Sources covering this story - https://smallbiztrends.com/sba-launches-90-energy-guarantee-to-boost-small-business-investments/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._