SBA Removes Combined 7(a) and 504 Loan Limits, Allowing Borrowers Up to $5 Million in Each Program 

May 19, 2026

Bob Coleman
Founder & Publisher

SBA announces a major policy change effective July 4, 2026.

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. 

Specifically, a lender may first approve a 7(a) loan, followed by a 504 transaction approved by the CDC. 

By sequencing loans, a small business concern can use the 7(a) program to fund their working capital and light equipment while also using the 504 program to finance their facility. 

Loans made for Eligible Energy Public Policy Projects do not reduce the $5 million limit for each small business concern for other 504 Projects. 

However, loans must not exceed $16,500,000 in the aggregate.

Small manufacturers, defined as a business with its primary NAICS Code in Sectors 31, 32, and 33, and all of its production facilities are located in the United States,  can currently secure an unlimited number of 504 loans as long as each loan is tied to a distinct project, and will also be able to apply for $5 million through the 7(a) loan program. 

To implement this clarification, SBA is revising Appendix 3: Definitions (Page 409): 

“Project: (13 CFR § 120.802 504) The purchase or lease, and/or improvement or renovation of one or more long-term fixed assets by a small business, with 504 financing, for use in its business operations. Borrowers may finance multiple Projects simultaneously using separate 504 loans, subject to 504 Debenture limits. Note: This SOP uses the term Project for 7(a) also. 

Project Property: (13 CFR § 120.802 504) One or more long-term fixed assets, such as land, buildings, machinery, and equipment, that are acquired or improved by a small business with a 504 transaction and for use in its business operations.” 

“The Trump SBA is unleashing historic new capital to support the millions of small businesses that are currently in growth mode thanks to President Donald J. Trump and the America First economic agenda,” says SBA Administrator Kelly Loeffler. “Amid record small business formation, job growth that continues to exceed expectations, and a surge in demand for Made in America, the agency is committed to supplying small businesses with the funding to hire, expand, and increase production. By doubling the combined loan limits of SBA’s 7(a) and 504 loans, this Administration is empowering job creators, particularly manufacturers, to invest in American workers, rebuild our industrial strength, and grow the small business economy.”