Small Businesses Now Eligible for $10 Million in SBA Financing
The U.S. Small Business Administration (SBA) announced that SBA borrowers may now combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing, an increase from the previous cumulative loan limit of $5 million. The policy change, which went into effect on July 4, expands the capital available to small businesses across all industries by raising the SBA’s maximum financing offering to the highest level in agency history.
“Under President Donald J. Trump, new business formation is surging and manufacturing is returning to America — which means small businesses are seeking more capital to hire, expand, and meet rising demand,” said SBA Administrator Kelly Loeffler. “SBA’s loan limits have not been raised for more than a decade, creating a gap in funding for small businesses that are growing. By doubling the cumulative 7(a) and 504 loan limit to $10 million, the SBA is unlocking the largest financing opportunity in agency history and giving job creators the flexibility they need to grow. In a booming manufacturing economy, that means more investment in American communities, more jobs for American workers, and more momentum for our Made in America comeback.”
“One of the most persistent things I’ve heard from small businesses across all industries is the need for more capital; these entrepreneurs will benefit from the SBA policy change,” said SBA Regional Administrator Matt Coleman who oversees the agency’s Atlantic Region of New York, New Jersey, Puerto Rico, and the U.S. Virgin Islands.
“The coupling of SBA’s flagship loan programs will result in positive economic impact as even more small business owners will find that they can purchase the building they have been renting for years while also acquiring more capital to create the entrepreneurial success that not only can be passed down for generations, but also provide good wages to skilled workers and support our Main Streets,” Coleman said.
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 greater flexibility to pair long-term financing for real estate and equipment with working capital to support operations and expansion.
Small manufacturers, which can secure an unlimited number of 504 loans as long as each loan is tied to a distinct project, are also now eligible to apply for $5 million through the 7(a) loan program. For these job creators, the rule will provide necessary financing to increase production, hire workers, and meet rising demand driven by President Trump’s fair trade agenda.