SBA to Double Loan Limit to $10 Million
WASHINGTON – Kelly Loeffler, Administrator of the U.S. Small Business Administration (SBA), announced a new rule that will allow eligible borrowers to combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing, increasing the cumulative loan limit from its current $5 million and expanding the capital available to small businesses across all industries. Small manufacturers, who can currently secure an unlimited number of 504 loans as long as each loan is tied to a distinct project, will also be able to apply for $5 million through the 7(a) loan program. Effective July 4, this rule will raise the SBA’s maximum financing offering to small businesses to the highest level in agency history.
“The Trump SBA is unleashing historic new capital to support the millions of small businesses that are currently in growth mode thanks to President Donald J. Trump and the America First economic agenda,” said SBA Administrator Kelly Loeffler. “Amid record small business formation, job growth that continues to exceed expectations, and a surge in demand for Made in America, the agency is committed to supplying small businesses with the funding to hire, expand, and increase production. By doubling the combined loan limits of SBA’s 7(a) and 504 loans, this Administration is empowering job creators, particularly manufacturers, to invest in American workers, rebuild our industrial strength, and grow the small business economy.”
Under the new policy, qualified borrowers who secure a 7(a) loan first may access up to $5 million through the 7(a) loan program and up to $5 million through the 504 loan program, for a combined total of $10 million in SBA-backed financing. By decoupling 7(a) loan balances from the 504 program, the SBA is giving capital-intensive small businesses — including those in construction, logistics, energy, food production, and related industries — greater flexibility to pair long-term financing for real estate and equipment with working capital to support operations and expansion. For manufacturers, the rule will provide even more capital to increase production, hire workers, and meet rising demand.
The 7(a) loan program is SBA’s flagship program, a public-private partnership which offers government-guaranteed loans to help small businesses finance equipment purchases, real estate acquisition, working capital (including revolving credit lines), and business expansion.
The 504 loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.
