In May, officials of the U.S. Small Business Administration (SBA) announced a new rule that will allow eligible borrowers to combine 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 can currently secure an unlimited number of 504 loans as long as each loan is tied to a distinct project. Now they will also be able to apply for $5 million through the 7(a) Working Capital Pilot loan program. This rule, which becomes effective on July 4, 2026, will raise the SBA’s maximum financing for small businesses to the highest level in agency history.

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, business expansion, and working capital, including revolving credit lines. The 504 loan program provides long-term, fixed-rate financing for major fixed assets that promote business growth and job creation. Such loans are available through Certified Development Companies, the SBA's community-based nonprofit partners that promote economic development within their communities and are certified and regulated by SBA.

“The agency is committed to supplying small businesses with the funding to hire, expand, and increase production,” according to SBA Administrator Kelly Loeffler. “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 SBA has introduced numerous programs and rule changes to deliver additional capital across key industries such as manufacturing, agriculture, housing, energy, and transportation. In late 2025, the SBA announced its first loan program for American manufacturers, and waived most upfront fees for small manufacturers over fiscal year 2026. In March, the agency announced a new 90% Made in America Loan Guarantee for small manufacturers, as well as a 90% Grocery Guarantee for small businesses across the food supply chain. The agency continues to promote existing programs such as the asset-based 7(a) Working Capital Pilot Program, which also has the ability to offer homebuilders project-based lines of credit up to $5 million.

The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA offers job creators the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations.

For more information about the U.S. Small Business Administration, please visit www.sba.gov.