WASHINGTON, D.C. — The U.S. Small Business Administration will allow eligible companies to combine two of its core lending programs for up to $10 million in federally backed financing beginning July 4, doubling the previous cap in a move aimed at expanding credit access for manufacturers and other capital-intensive small businesses.
The rule change allows borrowers to separately obtain as much as $5 million through the SBA’s 7(a) loan program and another $5 million through the agency’s 504 loan program. Previously, borrowing under the 7(a) program reduced the amount available through 504 financing.
The change materially expands the amount of government-backed capital available to businesses seeking to finance facilities, equipment purchases, and operational growth at a time when the Trump administration is pushing broader domestic manufacturing expansion and supply-chain investment.
Industries expected to benefit include manufacturing, construction, logistics, energy, and food production, according to the SBA.
Manufacturers already had broader access to multiple 504 loans tied to separate projects, but the revised structure now also gives eligible firms additional access to 7(a) working-capital financing without reducing their 504 borrowing capacity.
The SBA said the combined $10 million threshold will represent the largest financing limit in the agency’s history.
“This Administration is empowering job creators, particularly manufacturers, to invest in American workers, rebuild our industrial strength, and grow the small business economy,” SBA Administrator Kelly Loeffler said.
The 7(a) program is the SBA’s primary lending vehicle for working capital, acquisitions, and operational financing, while the 504 program is primarily used for long-term fixed-asset purchases such as commercial real estate and heavy equipment.
By separating the borrowing calculations between the programs, the agency is effectively allowing qualifying firms to layer operational financing on top of long-term asset financing under expanded federal guarantees.
The SBA linked the move to broader administration efforts to increase domestic production capacity and manufacturing investment. The agency also cited recent initiatives including waived fees for certain manufacturing-related loans, a 90% loan guarantee program for manufacturers, and separate guarantees targeting grocery and food supply-chain businesses.
The administration additionally pointed to recent manufacturing employment gains and elevated business formation data as evidence of broader expansion, though the release did not provide supporting economic data for those claims.
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