La U.S. Small Business Administration (SBA) recently announced several updates that could impact small business financing. Some changes are effective October 1, 2026, while others remain under consideration. Here’s a high-level overview of what business owners, lenders, and referral partners should know.
What You Need to Know
The SBA has announced several updates affecting the SBA 504 program, including reduced loan fees for certain industries and proposed changes that could expand eligibility for more businesses.
Reduced SBA 504 Fees (Effective October 1, 2026)
While SBA 504 fees remain largely unchanged, certain eligible businesses will continue to qualify for significant savings.
Summary of SBA 504 fee changes:
Manufacturers, food supply chain, and qualifying rural businesses will continue to benefit from reduced SBA fees resulting in lower financing costs.
- Upfront Guaranty Fee Waived – eligible borrowers will pay 0% on the SBA’s upfront guaranty fee for 504 loans, including those used for refinancing.
- Annual Servicing Fee Waived - the annual SBA servicing fee is also waived for borrowers that qualify. This applies for the full term of the loan.
Eligible Businesses:
- Manufacturers (NAICS Codes 31-33)
- Food supply chain businesses (NAICS Codes 1111,1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 423820, 4244, 4245, 424910, 445110, 484220*, 484230*, 493120, 493130 (484220 and 484230 are limited to refrigerated and frozen trucking, farm products, grain products, and livestock)
- Businesses that are in rural areas.
View list of eligible rural counties serviced by TMC Financing
Proposed SBA Size Standard Changes
SBA has also proposed changes to its industry size standards that could allow more businesses to qualify for SBA 504 financing. The proposal would simplify industry size calculations and, if adopted, could expand eligibility for thousands of growing businesses nationwide. SBA estimates approximately 114,000 additional firms could qualify as small businesses under the proposal.
Note: the proposal does not impact net worth-based size standards commonly used for SBA 504 financing.
Learn more about SBA 504 eligibility & size standards
Why These Changes Matters
Together, these developments reflect continued support for:
- Fabricación
- Food supply chain businesses
- Rural economic development
- Business expansion and job creation
- Expanded access to SBA financing
Whether you’re purchasing commercial real estate, refinancing existing debt, or investing in new equipment, the Programa SBA 504 continues to be an important financing tool for growing businesses.
Contact a TMC Financing representative to learn how these updates may apply to your business.
All SBA 504 information is subject to applicable SBA regulations, notices, program guidance, eligibility requirements, and subsequent updates.