SBA Notice

SBA Notice: SBA Doubles Cumulative 504 and 7(a) Loan Limits

Effective July 4, 2026, eligible borrowers can access record levels of SBA-backed funding – up to $10 million, an increase from a current total of $5 million

On May 18, 2026, SBA issued the attached Press Release announcing a new rule that will allow eligible borrowers to combine their 504 and 7(a) Loans for up to $10 million in SBA-backed financing. This is an increase from the current total of $5 million.

The press notice states “Under the new policy, qualified borrowers who secure a 7(a) loan first may access up to $5 million through the 7(a) loan program and up to $5 million through the 504 loan program, for a combined total of $10 million in SBA-backed financing. By decoupling 7(a) loan balances from the 504 program, the SBA is giving capital-intensive small businesses — including those in construction, logistics, energy, food production, and related industries — greater flexibility to pair long-term financing for real estate and equipment with working capital to support operations and expansion.”

SBA Notice on Cumulative 504 and 7(a) Loan Limits:

SBA has released an additional notice explaining that a lender may first approve a 7(a) Loan followed, second, by a 504 Loan approved by the CDC. For example, a borrower can use a 7(a) Loan to fund working capital and light equipment while also using a 504 Loan to finance its facility.

SBA also has clarified that a 504 Project may include multiple assets that are eligible to be financed simultaneously, subject to 504 Debenture limits.

This increase is especially impactful for Small Manufacturers who may be purchasing a facility and a production line simultaneously and require independent financing for both assets.

Please note: While 7(a) loans will not count against 504 capacity, 504 loans will count against 7(a) capacity. Therefore, proper sequencing of SBA loans will be critical.

Do you have questions?

Please reach out to one of our Business Development Officers with any questions or with projects that can benefit from this change.

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Your NWBDA Lending Team

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Read SBA Notice: https://www.sba.gov/article/2026/05/18/sba-doubles-cumulative-7a-504-loan-limit-10-million 
Read SBA Clarification Notice: SBA Policy Notice 5000-879058

E. & Central Washington/N. Idaho
John Bigovich
jbigovich@nwbusiness.org
(509) 425-6188

info@nwbusiness.org
www.nwbusiness.org
(509) 458-8555
(800) 540-1748 (Toll Free)

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