The U.S. Small Business Administration (SBA) has announced a major policy update that expands access to capital for small businesses.
Effective July 4, 2026, eligible borrowers can now combine SBA 504 and SBA 7(a) loans, unlocking up to $10 million in total SBA‑backed financing. This change gives business owners more flexibility to plan and fund larger growth projects using SBA programs together.
What’s Changed
Under the new guidance, SBA 504 and SBA 7(a) loans can now be used together without one impacting the other’s lending limits. This allows eligible borrowers to access:
- Up to $5 million through the SBA 504 loan program
- ($5.5 million for manufacturing or certain green projects)
- Up to $5 million through the SBA 7(a) loan program
- A combined total of up to $10 million in SBA‑backed financing, compared to the previous $5 million cap
Manufacturers can still obtain financing above these limits, and qualifying green energy projects may exceed the new $10 million cap under existing SBA rules.
What This Means for Small Businesses
This policy update provides greater flexibility for businesses planning expansion, relocation, or long‑term investment. By combining SBA programs, borrowers can:
- Structure financing for real estate, equipment, and working capital within one coordinated solution
- Support larger, more strategic expansion or modernization projects
- Access additional SBA capital even if existing SBA financing is already in place
These changes are especially impactful for capital‑intensive industries such as manufacturing, logistics, and owner‑occupied commercial real estate.
Why This Matters Now
At its core, this update allows financing to be structured around business needs rather than program limitations. Businesses now have access to more capital to expand, invest, and scale, along with greater flexibility to support complex or higher‑cost projects. Using each SBA program for its strengths allows borrowers to build smarter capital stacks aligned with long‑term growth goals.
TMC Financing’s Perspective
The SBA’s expansion financing limits marks an important step forward for small businesses planning their next phase of growth. By allowing SBA 504 and 7(a) loans to be used together, this update creates more flexibility and access to capital for larger, more complex projects.
As SBA policies continue to change, staying informed is important. Please check back for the most up‑to‑date information and contact to TMC Financing to discuss financing options and project details.