SBA 7(a) and 504 to be Fully funded in FY26 Budget — SBDCs Enhanced — SCORE, Women’s Business Centers, STEP to be Closed

May 7, 2025

Bob Coleman
Founder & Publisher

SBA 7(a) and 504 to be Fully funded in FY26 Budget — SBDCs Enhanced — SCORE, Women’s Business Centers, STEP to be Closed

No changes are anticipated to the SBA 7(a) and 504 Loan programs, as the administration believes the changes they have made in the fee structure will allow the two programs to operate on a zero subsidy basis. In other words, borrower and lender fees will offset loan losses.

The Administration says:

“The Administration is committed to supporting small businesses throughout the United States through tax cuts, deregulation, and responsible, targeted support.

“However, reforms at SBA are clearly warranted, as the previous administration unconstitutionally used the SBA to advance its divisive agenda, awarding billions in funding to certain businesses based solely on race and gender.

“Therefore, the Budget ends 15 specialized and duplicative programs, leaving only the Small Business Development Centers (SBDCs) program.”

Programs slated for elimination include SCORE, Women’s Business Centers, State Trade Expansion Program (STEP), and Veterans Business Outreach Centers. These cuts will be offset by a $10 million increase to the SBDCs to ensure “there is not a disruption in business Technical Services for veteran-owned businesses.”

The Budget provides $250 million for SBA’s salary and expense line item, bringing it back in line with 2021 levels.

What happens next?

The Budget is simply the administration’s wish list. Negotiations now begin between the administration, Congress, and very interested parties. Then, Congress will craft its own legislation. This is the first step in a very long, year-long process.

However, no cuts are anticipated in the SBA 7(a) and 504 lending programs.

Source: FY26 Budget Request