SBA’s New 90% Grocery Guarantee: A Timely Lending Opportunity for America’s Food Supply Chain

The rising cost of groceries has become one of the most visible pressure points for American families. Every trip to the grocery store is a reminder that food prices do not move in isolation. They are shaped by the strength — or weakness — of the businesses behind the food supply chain: farmers, ranchers, processors, wholesalers, truckers, cold storage providers, and neighborhood grocery stores.

That is why the Small Business Administration’s recent announcement about the first $30 million in loans delivered through its enhanced 90% Grocery Guarantee is worth paying attention to.

On June 3, 2026, the SBA announced that it had approved 19 loans totaling more than $30 million in just one month through the program. The initiative is designed to expand access to capital for small businesses that produce, process, distribute, store, and sell food across the United States. In plain English, the SBA is trying to help strengthen the food supply chain by making it easier for lenders to finance the businesses that keep groceries moving from the farm to the shelf.

Why This Program Matters

At its core, the 90% Grocery Guarantee is about reducing friction in the food economy.

Many businesses in the grocery and food supply chain are capital-intensive. A farmer may need equipment. A refrigerated warehouse may need expansion. A food distributor may need trucks. A grocery store may need working capital, new refrigeration systems, or funds to open a second location.

These investments are expensive, and traditional lenders often view them as risky because margins can be thin, collateral may be specialized, and revenue can fluctuate with fuel costs, commodity prices, labor costs, and consumer demand.

The SBA’s enhanced guarantee changes that risk equation.

Through the SBA International Trade Loan Program, eligible food supply-chain businesses may qualify for a 90% federal guarantee. That is meaningfully higher than the standard 75% guarantee available under the traditional SBA 7(a) program. For lenders, that added guarantee can make it easier to say yes to qualified borrowers. For borrowers, it may create access to longer-term, more affordable capital that might otherwise be difficult to secure.

Who Could Benefit?

The program is not limited to grocery stores. In fact, one of the most interesting parts of the announcement is how broad the eligible food economy really is.

According to the SBA, eligible businesses may include companies in industries such as grain farming, vegetable and melon farming, fruit and tree nut farming, cattle ranching, poultry and egg production, aquaculture, fishing, farm support services, grocery wholesalers, frozen food wholesalers, supermarkets, specialized freight trucking, refrigerated warehousing, and farm storage.

That means this program could be relevant to a wide range of Main Street and rural businesses, including:

• A family-owned grocery store looking to modernize its refrigeration systems.
• A local food distributor that needs additional trucks to serve more retailers.
• A cold storage operator expanding capacity for perishable goods.
• A farmer or rancher investing in equipment, infrastructure, or storage.
• A specialty food wholesaler trying to improve distribution and inventory management.

The common theme is simple: these are the businesses that help determine whether food gets produced efficiently, stored safely, transported reliably, and sold affordably.

The Bigger Picture: Capital as a Tool Against Food Inflation

Government programs do not lower grocery prices overnight. But capital access can play an important role in building a more resilient and efficient supply chain.

When food-related businesses cannot access financing, they delay upgrades, operate with older equipment, limit expansion, and struggle to absorb rising costs. Those inefficiencies eventually show up somewhere — often in higher prices, thinner margins, or less reliable service.

By encouraging lenders to deploy more capital into food production, processing, distribution, and storage, the SBA is betting that stronger infrastructure can help improve supply and reduce pressure in the system over time.

This is especially important for rural communities. Many of the businesses covered by the program are located outside major metropolitan areas, where access to capital can be more limited and where agriculture, transportation, and food distribution are major economic drivers.

A Strong Opportunity for SBA Lenders

For banks, credit unions, and non-bank SBA lenders, the 90% Grocery Guarantee creates a timely opportunity to serve an essential sector of the economy.

The program gives lenders a reason to re-engage with food supply-chain borrowers who may have been difficult to finance under standard credit structures. It also gives business development officers a compelling reason to reach out to grocery operators, wholesalers, agricultural businesses, cold storage facilities, and logistics companies.

The message is clear: if your business touches the food supply chain, now may be the time to explore whether SBA financing can support your next phase of growth.

What Borrowers Should Do Next

Business owners who operate in the food supply chain should start by reviewing whether their industry falls within the SBA’s eligible NAICS categories. From there, they should speak with an experienced SBA lender who understands both the International Trade Loan Program and the unique economics of food-related businesses.

Borrowers should be prepared to discuss how the loan proceeds will support growth, efficiency, storage, distribution, production capacity, or working capital needs. As with any SBA loan, strong financial records, a clear use of funds, and a thoughtful business plan will matter.

Final Thoughts

The SBA’s first $30 million in Grocery Guarantee loans is still an early milestone, but it points to a larger trend: food supply-chain financing is becoming a national priority.

For small businesses, this could mean new access to capital. For lenders, it could mean a new avenue for responsible loan growth. And for communities, it could mean stronger local food systems, better infrastructure, and more resilient grocery access.

The cost of groceries is not just a household issue. It is a supply-chain issue, a small business issue, and a lending issue. The SBA’s 90% Grocery Guarantee sits at the intersection of all three.

Heritage Bank’s SBA lending soars in two years since it formed key joint venture.

David Wallace is chairman and CEO of Heritage Bank.

One of Greater Cincinnati’s largest locally based banks has seen its Small Business Administration loans skyrocket in the two years since it formed a joint venture with a firm that specializes in those loans needed by many small companies.

Erlanger-based Heritage Bank formed an exclusive joint venture in May 2024 with Louisville-based Venturus, a national direct small business lender that specializes in SBA loans. The move has paid immediate dividends.

Those loans all are made in Heritage’s name and go on its books. Heritage had only about 15 SBA 7(a) loans on its books at the end of 2023, before Venturus came on board. SBA 7(a) loans can be used for a variety of purposes, including acquisitions, equipment purchases, growth capital and franchise financing.

SBA 7(a) Lending for Franchises: What Business Owners Need to Know

For entrepreneurs looking to open or expand a franchise, financing is often one of the biggest hurdles. Fortunately, the SBA 7(a) loan program has become one of the most popular and effective funding solutions for franchise businesses across the country.

The SBA 7(a) loan is backed by the U.S. Small Business Administration and designed to help small businesses access capital with more flexible terms than many conventional loans. Franchise owners commonly use these loans for startup costs, equipment purchases, working capital, real estate, renovations, and even acquiring existing franchise locations.

One major advantage of SBA 7(a) financing is the lower down payment requirement compared to traditional commercial loans. Many franchise borrowers can secure financing with as little as 10-15% equity injection, helping preserve cash during the critical early stages of business growth.

Another benefit is longer repayment terms. Depending on the use of proceeds, borrowers may receive terms up to 10 years for working capital or equipment and up to 25 years for commercial real estate. This can significantly improve monthly cash flow and provide breathing room as the business scales.

Not every franchise qualifies automatically, however. The franchise brand must typically be listed in the SBA Franchise Directory or meet SBA eligibility requirements. Lenders will also evaluate the borrower’s credit profile, management experience, liquidity, and the overall strength of the franchise system.

Strong franchise concepts combined with experienced operators often make excellent SBA loan candidates because lenders appreciate the proven business models, established brand recognition, and operational support many franchises provide.
Whether you are opening your first location or expanding a multi-unit operation, SBA 7(a) lending can be a powerful tool to help finance growth while maintaining flexibility and preserving working capital.

If you’re considering franchise ownership, working with an experienced SBA lender can help simplify the process and position your deal for success.