SBA-backed financing limit doubles to $10 million

The U.S. Small Business Administration has announced a significant expansion of its lending programs that could materially increase acquisition and growth capital available to lower middle-market businesses and SF-backed companies.

Effective July 4, eligible borrowers will be able to combine SBA 7(a) and 504 loans for up to $10 million in total SBA-backed financing, doubling the previous combined limit of $5 million. Under the new rule, businesses may access up to $5 million through the 7(a) program and an additional $5 million through the 504 program.

The policy change is particularly relevant for capital-intensive sectors such as manufacturing, construction, logistics, energy, and food production, where businesses often require both working capital and long-term financing for equipment and real estate. Manufacturers will benefit further from expanded access to 7(a) loans in addition to existing 504 financing structures.

According to SBA Administrator Kelly Loeffler, the initiative is intended to support business expansion, hiring, and domestic production amid rising demand for American manufacturing and continued small business formation growth.

The announcement also builds on several recent SBA initiatives aimed at increasing capital access across strategic industries, including waived loan fees for manufacturers, enhanced loan guarantees for “Made in America” businesses, and expanded working capital programs.

For the SF ecosystem, the expanded SBA financing cap could increase flexibility for acquisition structures, provide additional leverage capacity for qualifying transactions, and improve financing options for operators pursuing growth-oriented or asset-heavy businesses.