SBA To Double To $10 Million Maximum Loans For Some Small Businesses

May 21, 2026 - 22:44

Starting July 4th, the Small Business Administration will increase the maximum loan limit to $10 million for certain small businesses, doubling the previous cap of $5 million. The change targets companies that require significant capital for expensive equipment purchases or real estate acquisitions.

Under the updated 7(a) loan program, businesses in capital-intensive industries like manufacturing, construction, and healthcare stand to benefit the most. The SBA also revised its definition of "small" for these sectors, allowing more firms to qualify for the larger loans. For example, businesses with up to 1,500 employees in some manufacturing categories can now apply, compared to the previous 500-employee limit.

The agency expects the expansion to unlock roughly $750 million in additional lending each year. Small business owners who have struggled to secure financing for large-scale projects may find the new limits a practical alternative to traditional bank loans, which often carry stricter terms.

Critics note that the higher caps could increase taxpayer risk if borrowers default, but the SBA maintains that its guarantee structure remains unchanged. The agency will continue to back up to 85 percent of loans under $150,000 and 75 percent for larger amounts.

Applications for the expanded loans open on July 4th. Businesses seeking to take advantage should prepare detailed financial projections and documentation of their equipment or real estate needs.