As tariff refunds begin returning billions of dollars to U.S. businesses, commercial lenders, commercial real estate brokers, CPAs, and business owners have a unique opportunity to help clients strengthen their financial position and invest in long-term growth.
For many small businesses, manufacturers, wholesale distributors, and importers, 2025 financial statements tell only part of the story. Increased import tariffs significantly affected profitability, working capital, cash flow, and Debt Service Coverage Ratio (DSCR), making otherwise healthy businesses appear financially weaker than they actually were.
Now, through the U.S. tariff refund program administered by U.S. Customs and Border Protection (CBP), eligible importers are beginning to recover those funds. As businesses receive CBP tariff refunds, commercial lenders should take a fresh look at these borrowers and consider how improved liquidity may create new opportunities for commercial real estate financing through the SBA 504 Loan Program.
How Import Tariffs Impacted 2025 Financial Statements
Throughout 2025, businesses that relied on imported inventory, raw materials, equipment, or finished goods experienced significantly higher operating costs due to increased import tariffs.
These additional expenses commonly appeared as:
- Higher Cost of Goods Sold (COGS)
- Reduced gross profit margins
- Lower EBITDA
- Reduced net income
- Lower operating cash flow
- Increased working capital requirements
- Lower Debt Service Coverage Ratio (DSCR)
- Greater reliance on operating lines of credit
For many companies, these financial changes were not caused by declining sales, poor management, or operational weaknesses. Instead, they reflected temporary government-imposed costs that increased the cost of doing business.
Understanding this distinction is critical when evaluating a borrower’s financial performance.
Tariffs Affected More Than the Income Statement
One of the biggest misconceptions is that tariffs only reduced profitability.
In reality, tariffs affected nearly every major financial statement.
| Financial Statement | Impact of Tariffs |
| Income Statement | Higher COGS, reduced gross margin, lower EBITDA and net income |
| Balance Sheet | Reduced cash balances, higher inventory costs, increased line of credit utilization |
| Cash Flow Statement | Lower operating cash flow due to tariff payments |
| Credit Metrics | Lower DSCR, reduced liquidity, and decreased borrowing capacity |
Looking at all three financial statements together provides a much more accurate picture than reviewing net income alone.
Understanding the U.S. Tariff Refund Program
The U.S. tariff refund program allows eligible importers to recover certain tariffs paid on imported goods following recent court rulings affecting specific tariff collections.
Many businesses are now receiving substantial CBP tariff refunds, restoring capital that had previously been tied up in tariff payments.
For some companies, refunds total hundreds of thousands—or even millions—of dollars. This restored liquidity can significantly improve a company’s financial flexibility and support future investment.
What This Means for Commercial Loan Underwriting
Commercial lenders should look beyond historical financial performance and determine whether weaker financial results were caused by temporary tariff costs rather than declining business fundamentals.
Questions worth asking include:
- Did tariffs reduce gross margins?
- Has the business increased pricing to offset higher import costs?
- Has the company applied for a CBP tariff refund?
- Has the refund been approved or received?
- How will the recovered funds improve liquidity?
- Is the decline in profitability temporary or structural?
- Has inventory normalized?
- Will future imports continue to be affected by tariffs?
These conversations often reveal a much stronger credit story than historical financial statements alone suggest.
How Tariff Refunds Can Improve Loan Qualification
As businesses receive tariff refunds, lenders may notice improvements in several underwriting metrics.
Recovered funds can help businesses:
- Improve working capital
- Increase liquidity
- Reduce short-term debt
- Improve cash reserves
- Strengthen Debt Service Coverage Ratio (DSCR)
- Increase borrower equity
- Improve global cash flow
- Fund future expansion
Although tariff refunds are generally considered a one-time event, they can significantly strengthen a company’s financial position and improve its ability to qualify for financing.
Industries Most Affected by Import Tariffs
Businesses with significant import exposure experienced the greatest financial impact during 2025. These industries include:
- Manufacturers
- Wholesale distributors
- Industrial suppliers
- Construction material companies
- Medical device companies
- Electronics manufacturers
- Furniture companies
- Automotive parts suppliers
- Packaging manufacturers
- Food and beverage importers
- Restaurant supply companies
- Consumer product companies
Many of these businesses are also excellent candidates for SBA 504 commercial real estate financing because they often occupy warehouses, manufacturing facilities, industrial buildings, or owner-user office space.
Case Study: Looking Beyond the Financial Statements
Consider a manufacturing company that imported steel components throughout 2025.
Although annual revenue increased by 12 percent, the company paid nearly $900,000 in additional tariff costs.
As a result:
- Gross margins declined.
- Net income decreased.
- DSCR weakened.
- Working capital tightened.
However, customer demand remained strong, production increased, and management continued to execute successfully.
After applying for a CBP tariff refund, the company recovered a significant portion of those costs, immediately improving liquidity and allowing it to move forward with purchasing its owner-occupied manufacturing facility using an SBA 504 loan.
Without understanding the impact of tariffs, a lender reviewing only the 2025 financial statements might have reached a very different conclusion.
Turning Tariff Refunds into Long-Term Growth
Many businesses are using recovered funds to:
- Purchase owner-occupied commercial real estate
- Expand manufacturing facilities
- Purchase heavy equipment
- Modernize operations
- Increase inventory
- Hire additional employees
- Reduce higher-interest debt
- Preserve working capital
Businesses that delayed purchasing commercial property during 2025 may now have the liquidity needed to move forward with long-term investments.
Why This Creates New Opportunities for Commercial Real Estate Brokers
For commercial real estate brokers, tariff refunds may create a wave of new owner-user transactions.
Businesses that previously lacked sufficient liquidity for a down payment may now be positioned to purchase:
- Industrial buildings
- Warehouses
- Manufacturing facilities
- Medical office buildings
- Professional office buildings
- Retail owner-user properties
This creates new opportunities throughout California, Nevada, and Arizona.
How the SBA 504 Loan Program Fits In
The SBA 504 Loan Program helps small businesses purchase, construct, renovate, expand, or refinance owner-occupied commercial real estate while preserving working capital.
Businesses receiving tariff refunds may now have the liquidity needed to satisfy SBA equity injection requirements while maintaining healthy operating reserves.
Benefits of an SBA 504 loan include:
- As little as 10 percent down for many eligible projects
- Long-term fixed interest rates on the SBA portion
- Financing for owner-occupied commercial real estate
- Financing for eligible heavy equipment
- Preservation of working capital
- No balloon payment on the SBA debenture
For banks, the SBA 504 program allows them to retain the customer relationship while helping borrowers finance long-term fixed assets.
Questions Every Commercial Lender Should Ask
When working with importers, manufacturers, and distributors, consider asking:
- Did your business pay tariffs during 2025?
- Have you applied for a CBP tariff refund?
- How much do you expect to recover?
- Have you already received any refund payments?
- How will those funds be used?
- Would purchasing your commercial property strengthen your long-term financial position?
- Have you explored SBA 504 commercial real estate financing?
These conversations may uncover financing opportunities that simply did not exist a year ago.
Key Takeaways
- Tariff refunds are restoring billions of dollars in working capital to eligible U.S. businesses.
- 2025 financial statements may not accurately reflect a company’s long-term financial strength because tariff expenses temporarily reduced profitability and cash flow.
- Commercial lenders should distinguish between temporary tariff-related costs and underlying operational performance when underwriting commercial loans.
- Improved liquidity from tariff refunds may strengthen DSCR, working capital, and borrowing capacity.
- Many businesses may now be positioned to purchase owner-occupied commercial real estate using the SBA 504 Loan Program.
Helping Businesses Turn Tariff Refunds into Long-Term Growth
At Statewide CDC, we partner with banks—not compete with them—to provide SBA 504 commercial real estate financing for owner-occupied properties.
As one of the nation’s leading Certified Development Companies, we help commercial lenders structure financing solutions that preserve working capital while supporting long-term business growth.
If your borrower has received—or expects to receive—a tariff refund, now may be an ideal time to evaluate opportunities for purchasing commercial real estate, expanding operations, refinancing owner-occupied property, or investing in heavy equipment.
Our experienced team is ready to help you determine whether an SBA 504 loan is the right financing solution for your client.
About Statewide CDC
Statewide CDC is a leading Certified Development Company serving California, Nevada, and Arizona. We partner with commercial lenders to provide SBA 504 financing for owner-occupied commercial real estate, construction projects, business expansion, refinancing, and eligible heavy equipment. Our mission is to help small businesses preserve working capital while investing in long-term growth through below-market, fixed-rate financing. To learn more, contact our team today.
Disclaimer: This article is intended for educational purposes only and should not be considered legal, tax, or financial advice. Tariff refund eligibility, application procedures, and processing timelines are subject to change. Businesses should consult their customs broker, CPA, legal advisor, or U.S. Customs and Border Protection (CBP) regarding their specific situation.
