Administrator Kelly Loeffler of the U.S. Small Business Administration has announced a new rule that would allow eligible borrowers the ability to combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing. The new rule would increase the cumulative loan limit from $5 million to $10 million, expanding the available capital for small businesses.
SBA Administrator Kelly Loeffler said, “The Trump SBA is unleashing historic new capital to support the millions of small businesses that are currently in growth mode thanks to President Donald J. Trump and the America First economic agenda. 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. 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.”
According to the U.S. Small Business Administration, “Small manufacturers, who can currently secure an unlimited number of 504 loans as long as each loan is tied to a distinct project, will also be able to apply for $5 million through the 7(a) loan program. Effective July 4, this rule will raise the SBA’s maximum financing offering to small businesses to the highest level in agency history.”
Audio Reporting by Dale Sandlin and Elizabeth Sanders for Southeast AgNet.