SBA Hot Topic Tuesday: Status of SBA 7(a) and 504 $10 Million Loan Increase 

July 1, 2025

Bob Coleman
Founder & Publisher

SBA Hot Topic Tuesday: Status of SBA 7(a) and 504 $10 Million Loan Increase 

On the first day of the government’s fiscal fourth quarter, it seems appropriate to offer an update on the legislation about SBA’s loan limit. There is bipartisan support for the increase; the open question is timing.

Two bills—H.R. 3174 and S. 1555—aim to increase SBA 7(a) and 504 loan caps from $5 million to $10 million. This change would transform access to financing for U.S.-based small manufacturers.

H.R. 3174 – Made in America Manufacturing Finance Act of 2025

  • Introduced By: Rep. Roger Williams (R-TX-25) on May 1, 2025, with bipartisan support from Reps. Craig Goldman, Daniel Meuser, and Nathaniel Moran.
  • Current Status: Referred to the House Small Business Committee. A hearing featured SBA Administrator Kelly Loeffler testifying in favor of expanded capital access for manufacturers.

Key Provisions:

  • Increase SBA loan caps: 7(a) and 504 loans rise to $10 million.
  • Up to $8 million allocated for working capital, supplies, or export finance.

S. 1555 – Made in America Manufacturing Finance Act of 2025

  • Introduced By: Sen. Joni Ernst (R-IA) on May 1, 2025, with cosponsors Sens. Chris Coons (D-DE), Todd Young (R-IN), and John Hickenlooper (D-CO).
  • Current Status: Referred to the Senate Small Business & Entrepreneurship Committee with hearings held on May 21. The bill awaits markup and report before advancing further.

Key Provisions:

  • Defines “small manufacturer” as U.S.-based businesses (NAICS 31–33).
  • Stages increases to 7(a) and 504 loan caps, both reaching a $10 million threshold.

 Status Snapshot

BillChamberLatest Update
H.R. 3174HouseCommittee hearing featured SBA testimony on May 1.
S. 1555SenateHearings completed May 21; awaiting committee markup.

Why It Matters

Doubling SBA loan caps to $10 million will give small manufacturers the financial flexibility to invest in:

  • Equipment and technology upgrades.
  • Facility expansions.
  • Export growth initiatives.
  • Workforce hiring and training.

Bipartisan support for both bills reflects their importance to manufacturing stakeholders and broader economic development across the U.S.

What’s Next?

  • House: Watch for committee markup sessions on H.R. 3174, potential amendments, and floor consideration.
  • Senate: Look for a committee vote and subsequent progress on S. 1555. Follow the May 21 hearing transcript for more insights.
  • Coordination: Bicameral alignment will be critical to avoid reconciliation delays once the bills advance.