What is the SBA loan default rate for Musical Instrument Manufacturing?

At 14.2%, Musical Instrument Manufacturing sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The rate is measured on the resolved loans (paid in full or charged off), loans that have reached a final outcome. 124 lenders actively fund this industry.

Which SBA program is best for Musical Instrument Manufacturing?

The SBA 7(a) program is the most commonly used for Musical Instrument Manufacturing businesses, accounting for the majority of approved loans. The SBA 504 program is popular for larger real estate and equipment purchases.

NAICS 339992ManufacturingFY2027 Fee WaiversLending Growing

How Much Can Musical Instrument Manufacturing Businesses Get in SBA Loans?

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Address: Westfield, Westfield, IN, 46074, US
Telephone: +13174526990
Price range: Referral fee at closing

296 SBA loans totaling $61.2M have been approved for musical instrument manufacturing businesses (NAICS 339992). The average approved SBA loan is $207K, which is 39% below avg the $340K national average. 124 active lenders fund this industry with a 14.2% default rate on the matured 2018-2021 loan cohort.

Moderate default risk14.2% vs 15.4% all industry avg

At 14.2%, Musical Instrument Manufacturing sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 339992 (Musical Instrument Manufacturing) received 296 SBA loans worth $61.2M across 5+ states. Average loan $207K, average term 114 months, 14.2% default rate (resolved loan basis).124 active SBA approved lenders fund this industry.Manufacturers in NAICS 31 to 33 qualify for FY2027 SBA fee terms and can access the MARC revolving credit program. There are approximately 615 U.S. establishments in this industry (Census 2022).

296

Total SBA Loans

$61.2M

Total Volume

$207K

Avg Loan Size

39% below avg

124

Active Lenders

114 mo

Avg Term

12% below avg

1,635

Jobs Supported

Is SBA Lending Growing for Musical Instrument Manufacturing?+133% growth

$3.0M

$1.1M

$3.0M

$3.1M

$625K

$3.9M

$1.8M

$1.9M

$1.2M

$8.0M

FY2027 Manufacturing Fee Waivers Active

The SBA has waived both 504 fees for manufacturers in NAICS 31 to 33 through September 30, 2027:

$0 Fees

504 loans: all guaranty fees waived for manufacturing

$0 Fees

7(a) loans of $700,000 or less: 0% upfront fee for manufacturers

$5M MARC

Revolving credit line: manufacturers only, launched Oct 2025

The proposed Made in America Manufacturing Finance Act (H.R. 3174) would double SBA limits to $10M for domestic manufacturers, currently passed House, awaiting Senate vote.

Which SBA Program Do Musical Instrument Manufacturing Businesses Use Most?

SBA 7(a)275 (93%)

SBA 50421 (7%)

What Is the Best SBA Loan for Musical Instrument Manufacturing?

SBA 7(a)

Versatile funding for working capital, equipment, and expansion. 7(a) upfront fee is 0% for qualifying manufacturers on loans of $700,000 or less in FY2027

Industry avg loan: $207K

Typical term: 114 months

Historical avg rate: 7.49%

124+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 14.2%

Where Are Musical Instrument Manufacturing SBA Loans Most Common?

50 loans

$8.5M

18 loans

$3.5M

17 loans

$3.0M

17 loans

$3.2M

15 loans

$3.5M

SBA Lending Activity in Musical Instrument Manufacturing

124 SBA lenders have funded 296 loans to musical instrument manufacturing businesses (NAICS 339992). Which lender approves your deal depends on your location, loan size, credit profile and time in business, not on who funded someone else. PeerSense makes the introduction.

Loans funded

296

Active lenders

124

Total volume

$61.2M

Avg loan size

$207K

Browse all SBA lenders

Musical Instrument Manufacturing Industry Context

U.S. Establishments

615

U.S. Census Bureau · 2022

U.S. Employment

12,573,000

BLS · 2026

SBA Penetration

48.13%

SBA loans per establishment

Talk to PeerSense

PeerSense sources capital for musical instrument manufacturing businesses. The capital source sets the terms. No upfront fee. Talk to PeerSense. Referral fee at closing.

Retainers

10%

Down with SBA 7(a)

25yr

Terms Available

Talk to PeerSense (317) 452-6990

Talk to PeerSense about financing a Musical Instrument Manufacturing business.

Tell us your loan amount and use of funds. PeerSense sources capital. The capital source sets the terms.

SBA 7(a) / 504: PeerSense will reach out. No obligation.

How big is your deal?

Where are you in the deal?

Equity or down payment ready

Credit score

Timeline to close

SBA already on the books?

What best describes your company

Liquid funds available outside this deal

Where is the property or business

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How Does SBA Lending Work for Musical Instrument Manufacturing Businesses?

Across all SBA loan programs, 296 loans have been approved for businesses classified under NAICS 339992 (Musical Instrument Manufacturing), representing $61.2M in total capital deployed. The average approved loan of $207K is 39% below avg the national SBA average of $340K, with typical repayment terms of 114 months.

SBA lending for musical instrument manufacturing is accelerating. Loan volume has grown approximately 133% over recent fiscal years. This upward trajectory suggests expanding access to capital and growing lender confidence in this sector. Peak activity occurred in FY2025.

The industry sees a balanced mix of SBA programs, with 7% of loans using the 504 program for fixed asset acquisition and the majority using 7(a) for its flexibility across working capital, equipment, and business acquisition uses. SBA 7(a) loans offer up to $5M with terms up to 25 years for real estate.

As a manufacturing business under NAICS 31 to 33, you qualify for FY2027 SBA fee terms through September 30, 2027. For manufacturers, the SBA has waived the 504 upfront guaranty fee and annual service fee, and the 7(a) upfront fee is 0% on loans of $700,000 or less. Additionally, the MARC (Manufacturers' Access to Revolving Credit) program launched in October 2025, offering up to $5M in revolving credit exclusively for domestic manufacturers, a first for SBA lending.

SBA Loan Guide SBA Calculator SBA Lender Directory Industry Data Hub Current SBA Rates Contact Us MARC Program

Frequently Asked Questions: Musical Instrument Manufacturing SBA Loans

What is the average SBA loan size for musical instrument manufacturing businesses?

Based on 296 approved SBA loans, the average loan size for musical instrument manufacturing (NAICS 339992) is $207K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a musical instrument manufacturing business?

SBA 7(a) is the most commonly used SBA program for musical instrument manufacturing businesses. Versatile funding for working capital, equipment, and expansion. 7(a) upfront fee is 0% for qualifying manufacturers on loans of $700,000 or less in FY2027. PeerSense can analyze your specific deal to determine the optimal program.

How many lenders fund SBA loans for musical instrument manufacturing?

124 different SBA approved lenders have funded loans in this industry. Not all lenders are equally active in every industry. Talk to PeerSense. The capital source sets the terms for a musical instrument manufacturing file.

Are there SBA fee waivers for manufacturing businesses in 2026?

Yes. In FY2027, the SBA has waived both 504 fees for manufacturers, including debt refinance with or without expansion. The upfront 7(a) fee is also 0% for manufacturers on loans of $700,000 or less. The MARC program offers revolving credit up to $5M for manufacturers.

How does PeerSense help musical instrument manufacturing businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a musical instrument manufacturing file. The capital source sets the terms. No upfront fee. The desk is paid at closing.

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Data aggregated from SBA loan records (1992 to 2025). Musical Instrument Manufacturing defined by NAICS code 339992. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.