The U.S. Small Business Administration (SBA) provides loan guarantees to lenders, giving borrowers access to higher amounts of capital than the bank could offer on its own. As of July 4, 2026, the SBA is increasing the maximum amount that borrowers can access through its 7(a) and 504 signature lending programs.
According to the SBA press release, “qualified borrowers who secure a 7(a) loan first may access up to $5 million through the 7(a) loan program and up to $5 million through the 504 loan 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.”
SBA 7(a) is the U.S. government’s small business lending program
The U.S. Small Business Administration’s 7(a) loan program provides up to $5 million of funding for the purchase of furniture, fixtures, supplies, machinery, equipment, and other business needs. Funds can also be used for working capital or to refinance business debt, including business changes in ownership. Eligible businesses must be located in the United States and operate as a for-profit entity that meets SBA size rules relative to its North American Industry Classification System (NAICS) code. For most businesses, that threshold is employing less than 5oo workers. Nonprofit organizations, financial and lending businesses, and gambling establishments are among the types of businesses that are ineligible for SBA 7(a) loans.
SBA 504 loans finance owner-occupied commercial real estate and long-term assets
Another SBA loan program is the 504 loan, which finances the purchase of owner-occupied commercial property. It can be used to buy land or a building or to construct a new facility or renovate an older one. Other eligible site improvements include road building, installing utilities, adding a parking lot and landscaping. Durable machinery and equipment with a 10-year work life can also be purchased. A 504 loan can be used for anything that constitutes a “fixed asset.”
The Small Business Administration distributes 504 loans via certified development corporations, which prepare the loan paperwork, coordinate the efforts of all parties to the loan, and structure the loan to balance the interests of the borrower and the Small Business Administration.
Before July 1, 2026, businesses could access up to $5 million through one or both programs combined. The SBA is decoupling the two programs, allowing businesses to borrow up to $5 million through each program for a total of $10 million.
Where to find SBA loans
Potential borrowers do not apply directly to the SBA. Instead, they apply for funding from a bank or nonprofit lender that works with the SBA.
New Mexico nonprofit lenders that offer SBA 504 and other SBA loans include B:Side Capital, The Loan Fund, RCAC, LiftFund, WESST (SBA microloans), and DreamSpring. Clearinghouse CDFI and Century Bank also offer SBA 504 loans.