A small manufacturer who already tapped $3 million through the SBA’s popular 7(a) loan used to be stuck with just $2 million of room under the 504 program. As of July 4, 2026, that ceiling is gone.
The Small Business Administration announced that it has decoupled its two flagship loan programs, letting eligible borrowers access up to $5 million through the 7(a) program and up to $5 million through the 504 program independently. The old combined cap was $5 million total. The new one is $10 million.
The change was formalized in Policy Notice 5000-879058, dated May 18, 2026 and effective July 4.
Two programs, two separate limits
The 7(a) program is the SBA’s flexible workhorse, covering working capital, equipment, inventory, and business acquisitions up to $5 million. The 504 program is narrower, providing long-term, fixed-rate financing for major assets like commercial real estate and heavy equipment through nonprofit Certified Development Companies. Until now, a dollar borrowed under one counted against the other.
That coupling punished capital-intensive businesses in sectors like manufacturing, construction, and logistics, exactly the firms that need both a building and the cash to operate inside it. SBA Administrator Kelly Loeffler called the new limit “the highest level in agency history.”
Not every business will feel the difference
NerdWallet reported that only 6.8% of SBA 7(a) borrowers receive loans larger than $2 million, and the average loan to businesses with 5 or fewer employees is just $377,192. The expanded ceiling is aimed at growth-stage companies with big fixed-asset needs, not the typical Main Street borrower.
There are important limits that have not changed. The maximum SBA guarantee exposure to any single borrower, including affiliates, remains $3.75 million ($4.75 million for qualifying export loans). Individual program caps stay at $5 million for 7(a) and generally $5 million to $5.5 million per project for 504.
Sequencing matters, too. Industry advisors note that the 7(a) loan should typically be approved first to ensure the 504 loan is treated as a separate project. Businesses planning deals that straddle the old limit may want to push closings past July 4 to take advantage of the new structure.
Current SBA 7(a) rates run roughly 9% to 11.5% APR, so the bigger question for many owners will be whether they can service the debt, not whether they can access it. Any business considering a combined package above $5 million should work with an SBA-experienced lender and confirm eligibility under the agency’s size standards before structuring a deal.
