- A new U.S. Small Business Administration rule bumps the small business borrowing limit to $10 million.
- Eligible businesses can access $5 million each from 7(a) and 504 programs.
- The rule supports job creation and economic growth amid rising business costs.
SALT LAKE CITY — Blossoming small businesses in the Beehive State and across the nation are set for a financing boost through a new rule from the U.S. Small Business Administration that went into effect July 4.
Under the rule, eligible businesses can access up to $10 million in combined SBA-backed financing through the 7(a) and 504 programs — double the previous loan limit.
First announced in May, the rule also marks the largest small-business financing offering in the agency's history.
"Amid record small business formation, job growth that continues to exceed expectations, and a surge in demand for Made in America, the agency is committed to supplying small businesses with the funding to hire, expand, and increase production," U.S. Small Business Administrator Kelly Loeffler said in a statement. "By doubling the combined loan limits of SBA's 7(a) and 504 loans, this Administration is empowering job creators, particularly manufacturers, to invest in American workers, rebuild our industrial strength, and grow the small business economy."
The new rule is a welcome lifeline amid rising business costs, which small businesses are far from immune to.
In fact, a net 36% of U.S. small business owners reported raising average selling prices in May, the highest mark since March 2023, according to June data from the National Federation of Independent Business.
It could also help small businesses looking to expand, with NFIB data showing only 16% of U.S. small business owners plan to make capital expenditures over the next six months, the lowest reported level since March 2009.
More specifically, the new policy will allow qualified borrowers who first secure a 7(a) loan to access up to $5 million through the 7(a) program and up to $5 million through the 504 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," said a release from the U.S. Small Business Administration. "For manufacturers, the rule will provide even more capital to increase production, hire workers, and meet rising demand driven by President Trump's fair trade agenda."
