SBA $10 Million Loan Cap Passes Committee, Moves to Full Senate Vote

July 28, 2025

Bob Coleman
Founder & Publisher

Main Street Monday: SBA $10 Million Loan Cap Passes Committee, Moves to Full Senate Vote

The Senate Small Business & Entrepreneurship Committee has given bipartisan approval to a bill that known as the Made in America Manufacturing Finance Act (S. 1555) — the legislation proposes raising the loan limits for SBA 7(a) and 504 loans from $5 million to $10 million.

Timing? I don’t know but if I had to guess I would say implementation will begin October 1, the beginning of the federal government’s fiscal year 2026.

10 Key Facts About the SBA Loan Cap Increase

1. Bill Overview

  • The Made in America Manufacturing Finance Act doubles the loan limit for SBA 7(a) and 504 programs, specifically aimed at small manufacturers.
  • The increased cap—from $5 million to $10 million—is designed to provide small-scale domestic producers with the funds they need to grow and compete.

2. Senate Committee Approval

  • On July 17, the Senate Small Business & Entrepreneurship Committee approved the bill with strong bipartisan backing.
  • Key modifications, championed by Ranking Democratic Member Senator Ed Markey, introduced safeguards to ensure program integrity and job creation.

3. Bipartisan Support

  • The legislation was authored by Sen. Joni Ernst (R-IA) and Sen. Chris Coons (D-DE), exemplifying robust cross-party collaboration.
  • In the House, the bill is sponsored by Rep. Roger Williams (R-TX) and Rep. Carol Miller (R-WV).

4. Broad Business Community Backing

  • Small manufacturers, banks, and trade organizations in states from Iowa to Arizona have rallied behind the bill.
  • Industry leaders say it has the potential to “supercharge innovation, collaboration, and production,” giving U.S. businesses a competitive edge.

5. Economic & Supply-Chain Impact

  • By increasing loan limits, the SBA aims to empower manufacturers to:
  • Invest in new equipment
  • Enhance workforce skills
  • Reshore critical supply chain operations

6. First Loan Limit Increase in Over a Decade

  • This bill marks the first inflation-adjusted loan limit increase in more than 10 years for SBA-backed manufacturing loans.

7. SBA Tools & Oversight

  • SBA Administrator Kelly Loeffler supports the bill, highlighting its alignment with the agency’s broader goals.
  • The SBA also announced a new online tool, “Make Onshoring Great Again,” to help connect small manufacturers with domestic suppliers.

8. Program Integrity Safeguards

  • To mitigate risks, Democrats on the committee added provisions ensuring that larger loans remain tied to strict job creation metrics and fraud prevention measures.

9. Next Steps in Congress

  • Having passed the Senate committee, the bill now heads to the full Senate for a vote.
  • If approved, it will move to the House of Representatives, where similar legislation already enjoys strong support.
  • Finally, it will require President Trump’s signature before becoming law.

10. Part of a Broader U.S. Manufacturing Agenda

  • This legislation complements several federal initiatives aimed at revitalizing U.S. manufacturing, including:
  • Tax reforms
  • Tariff adjustments
  • Programs like CHIPS Act and Inflation Reduction Act (IRA)