The SBA Grocery Guarantee is a new federal loan program designed to help businesses in the food supply chain access affordable capital. Announced on March 27, 2026, by the U.S. Small Business Administration, the program offers loans up to $5 million with a 90% federal guarantee through the SBA's International Trade Loan (ITL) program. If your business is involved in food production, distribution, logistics, or retail, this program could significantly improve your ability to secure financing at competitive rates.
The Grocery Guarantee is an expansion of the SBA's existing International Trade Loan program. It raises the federal guarantee from the standard 75% (under the traditional SBA 7(a) program) to 90% for eligible businesses tied to America's food supply chain. The higher guarantee means lenders take on less risk, which translates to easier approvals and better terms for borrowers.
The program was created to increase domestic food production, strengthen supply chains, and help reduce grocery costs for American consumers. It became available to eligible businesses starting May 1, 2026.
The SBA Grocery Guarantee provides up to $5 million in financing with a 90% federal guarantee, making it one of the most lender-friendly programs available to food supply chain businesses.
Eligibility is based on your business's NAICS (North American Industry Classification System) code. The SBA has opened the program to a wide range of industries connected to food production and distribution, including:
If your business falls within one of these sectors, you may qualify for the enhanced guarantee. The full list of eligible NAICS codes is available on SBA.gov.
Here is a breakdown of the core terms of the SBA Grocery Guarantee loan:
The longer repayment terms make this program especially attractive for businesses looking to finance fixed assets like processing equipment, cold storage facilities, or fleet vehicles used in food distribution.
The Grocery Guarantee sits within the ITL program, which has some key differences from the standard SBA 7(a) loan:
The standard 7(a) program offers a 75% guarantee on loans over $150,000, while the Grocery Guarantee offers 90%. The ITL program has a $5 million cap, compared to 7(a)'s $5 million cap, but the higher guarantee percentage means lenders can recover more in the event of default. This makes the Grocery Guarantee particularly useful for borrowers who might otherwise face tighter credit conditions.
For agricultural businesses specifically, the Grocery Guarantee also compares favorably to USDA Farm Service Agency loans, which cap at $2.34 million with a 95% guarantee. The SBA program allows larger loan amounts, though FSA loans may carry lower fees.
The Grocery Guarantee loan is issued through SBA-approved lenders, not directly from the SBA. Here is how the process works:
The Grocery Guarantee is flexible in how you can deploy the capital. Common uses include:
Whether you are a cattle rancher looking to expand your operation, a grocery store owner investing in new locations, or a trucking company adding refrigerated trailers, this program is designed to support your growth. Blue Group Capital offers a range of lines of credit, term loans, and equipment financing solutions that can complement an SBA Grocery Guarantee loan.
Navigating SBA programs can feel overwhelming, especially with new initiatives like the Grocery Guarantee. Blue Group Capital simplifies the process. Our team has deep experience with SBA lending and can help you determine whether the Grocery Guarantee, a traditional 7(a) loan, or another financing product is the best fit for your business.
We work directly with you from application through funding, and most of our SBA clients receive a decision within days, not weeks. If your food supply chain business needs capital to grow, apply now or call us at (833) 489-3863 to speak with a dedicated loan advisor.
The SBA Grocery Guarantee is an enhanced version of the SBA's International Trade Loan program that offers a 90% federal guarantee on loans up to $5 million for businesses in the food supply chain, including farmers, ranchers, grocery retailers, and logistics companies.
The program became available to eligible businesses on May 1, 2026. It was announced by the SBA on March 27, 2026.
The main difference is the guarantee percentage. Standard 7(a) loans carry a 75% federal guarantee, while the Grocery Guarantee offers 90%. This higher guarantee encourages lenders to approve more applications and offer better terms. Both programs cap at $5 million.
Yes. The SBA has traditionally limited lending to farmers who could access financing through USDA programs, but the Grocery Guarantee specifically opens eligibility to a broad range of agricultural producers, including crop farmers, livestock operations, poultry producers, and aquaculture businesses.
You apply through an SBA-approved lender. Blue Group Capital can help you get started with your application and guide you through the process. The application typically requires business financials, tax returns, and a description of how the funds will be used.
Yes. While the program is designed to support investments in production, processing, and distribution, eligible uses include working capital to support business operations within the food supply chain.
Blue Group Capital LLC is a business financing advisory firm. We provide tailored financing solutions for businesses in the US and Canada.
4800 N. Federal Highway
Boca Raton, FL 33431
5700 Yonge St
North York, ON M2M 4K2
*Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
