Information on the SBA website describes how SBA Doubles the Cumulative 7(a) and 504 Loan Limit to $10 Million.
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.
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.