[May 18, 2026] 

Effective July 4, the SBA is officially increasing cumulative 7(a) and 504 loan limits to an unprecedented $10 million for eligible borrowers.

The biggest change isn’t simply higher loan limits — it’s expanded access to capital through both SBA programs.

SBA is now formally recognizing the independent statutory limits of the 7(a) and 504 programs, allowing eligible borrowers to utilize both programs sequentially without the same restrictions that previously limited overall SBA borrowing capacity.

In practical terms, a business may now:
• Use a 7(a) loan for working capital, partner buyouts, or light equipment
• Then separately access 504 financing for real estate, heavy equipment, or expansion projects

Previously, outstanding 7(a) balances could significantly reduce available 504 borrowing capacity. Under this clarified guidance, businesses can now maximize the benefits of both programs — creating greater flexibility and substantially more available capital for growth.

Bottom line?

This isn’t just about larger numbers. It’s about smarter capital structuring and expanded financing opportunities for growing businesses.

Reach out to SEED and let our team help you put these expanded SBA programs to work for your business.

Read more here: SBA Doubles Cumulative 7(a) and 504 Loan Limit to $10 Million | U.S. Small Business Administration