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Small Businesses Can Now Get Up to $10 Million in SBA-Backed Loans
The government has made it possible for some small businesses to borrow more money to grow, buy equipment, and expand.
The U.S. Small Business Administration (SBA) announced a new rule on May 18, 2026. The rule took effect on July 4, 2026.
Before this change, eligible businesses could combine SBA 7(a) and 504 loans for a total of up to $5 million.
Now, some businesses may be able to combine the two loan programs to get up to $10 million in SBA-backed financing.
This means businesses that qualify may have more money available to help them grow.
What Can Businesses Use the Money For?
Business owners may use these loans for things such as:
Buying new machines and equipment.
Buying business property.
Getting money to pay regular business costs.
Expanding their business.
Increasing production and hiring workers.
Businesses in industries such as construction, trucking, energy, food production, and manufacturing may find this change helpful.
How Do the Two Loan Programs Work?
The SBA has two loan programs that can help small businesses.
The 7(a) Loan Program
This program can help businesses buy equipment, purchase property, pay business costs, and grow. The maximum loan amount under the 7(a) program is generally $5 million.
The 504 Loan Program
This program helps businesses pay for large items that support growth, such as buildings, land, and certain types of equipment. It offers long-term loans with fixed interest rates.
Under the new rule, eligible businesses that get a 7(a) loan first may also qualify for a 504 loan.
They may be able to borrow up to $5 million through each program, for a total of $10 million.
However, getting both loans is not automatic. Businesses must meet the rules and qualify for the financing.
What Does This Mean for Small Business Owners?
Imagine you own a manufacturing company and want to buy new machines and expand your building.
You may need a large amount of money to pay for both projects.
The new rule may give qualified businesses more ways to get the money they need.
It may help some business owners buy equipment, grow their operations, serve more customers, and create jobs.
Where Can You Learn More?
If you own a small business and need money to buy equipment or expand, learn about the SBA's loan programs and speak with a qualified lender about your options.
Important: These are loans, not free government grants. Businesses must repay the money and meet the lender's requirements. The amount you can borrow depends on your business and the loan rules.
Read the original announcement from the SBA:
https://legacy.sba.gov/article/2026/05/18/sba-doubles-cumulative-7a-504-loan-limit-10-million
