SBA’s 2027 Proposed Budget Supports $40 Billion in 7(a), $16.5 Billion for 504 – Eliminates SBDC, SCORE
April 8, 2026
Bob Coleman
Founder & Publisher
SBA’s 2027 Proposed Budget Supports $40 Billion in 7(a), $16.5 Billion for 504 – Eliminates SBDC, SCORE
SBA’s budget for FY 2027, for the year beginning October 1, 2026, was submitted to Congress last week for its approval.
SBA’s target funding levels in FY 2027 are 7(a) lending at $40 billion and 504 lending at $16.5 billion.
Both programs would continue to operate with zero subsidy, with loan losses offset by lender and borrower fees.
A major change is to decouple 7(a)/504 borrowing limits, which allow borrowers to borrow the maximum under each program.
And the $10 million loan increase to several manufacturing NAICS codes.
It also includes policy changes to allow the SBA to charge administrative fees for the 7(a), 504, and SBIC loan programs.
The biggest SBA cut is to Entrepreneurial Development Programs. Those programs would drop from $330 million in FY 2026 to $21.4 million in FY 2027, a cut of $309 million.
Here are the SBA programs proposed to be cut (reduced to $0) in the FY 2027 Trump budget:
- SCORE (mentoring program)
- Small Business Development Centers (SBDCs)
- Women’s Business Centers (WBCs)
- Microloan Technical Assistance Program
- Program for Investment in Microentrepreneurs (PRIME) Technical Assistance
- State Trade Expansion Program (STEP)
- Growth Accelerators
- Regional Innovation Clusters
- Federal and State Technology Partnership Program (FAST)
- HUBZone Program (administrative funding eliminated)
- Native American Outreach Program
- Entrepreneurship Education
- Cybersecurity Pilot Programs for Small Businesses
- National Women’s Business Council
The only Entrepreneurial Development funding that remains is the Veterans Business Outreach Centers at $21.4 million.
The proposal also reduces SBA Salaries and Expenses from $323.1 million to $260.2 million, citing “workforce optimization” and contract reductions as part of that change.
The budget tables show total SBA FTEs falling from 3,771 to 3,690.
At the same time, the proposal would increase the Office of Advocacy from $10.1 million to $14.1 million.
The administration’s April 3, 2026, SBA budget document requests $472 million in net new appropriated resources, plus $158 million from business-loan administrative fees, for a total of $630 million in new budgetary authority.
Congress must approve the budget before any of these changes take effect.