Local Small Businesses Could Benefit from Higher Loan Limits Set by U.S. Small Business Administration
Dawn DeRidder
Vice President and SBA Business Banking Officer
At The National Bank of Indianapolis, we support small businesses and want to see them thrive in our community. That’s why we are pleased to share the news that the U.S. Small Business Administration has revised its 7(a) and 504 loan coordination rules, allowing qualified borrowers to access up to $10 million in combined SBA-backed financing—up to $5 million through the 7(a) program and up to $5 million through the 504 program. These changes, effective July 4, 2026, are now available, allowing for greater financing options for small businesses and offering enhanced flexibility and capital access, particularly benefitting manufacturers and capital-intensive industries.
- Qualified borrowers may now combine SBA 7(a) and 504 financing, with up to $5 million available through each program, for a combined total of up to $10 million in SBA-backed financing.
- SBA has also announced targeted benefits for eligible small manufacturers, including a 90% federal guarantee and fee waivers on certain qualifying manufacturing loans through September 30, 2026.
- Current SBA eligibility rules require 100% of the direct and indirect owners of the applicant business to be U.S. citizens or U.S. nationals with their principal residence in the United States, its territories, or possessions.
According to the SBA, the new rule will raise the maximum financing to be offered to small businesses to the highest level in agency history. The program changes are intended to support small business formation, creation of new jobs, and a response to demand for Made in America manufacturing. By doubling the combined loan limits of SBA’s 7(a) and 504 loans, small companies can contribute even more to the economy.
This update creates new opportunities for local businesses to access the capital they need to grow. By increasing the allowable limit, eligible borrowers can now combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing at twice the previous limit. The added flexibility allows businesses to finance real estate and equipment while maintaining the working capital needed to support day-to-day operations and future expansion. For many small businesses across Greater Indianapolis, that can make a meaningful difference in achieving their growth goals.
Please contact Dawn DeRidder, Vice President and SBA Business Banking Officer at The National Bank of Indianapolis, for additional support and answers about these program updates: DawnDeRidder@NBofI.com
Source: SBA Doubles Cumulative 7(a) and 504 Loan Limit to $10 Million | U.S. Small Business Administration