The SBA recently made an important change that removes a financing barrier and gives many growing businesses more flexibility when using both SBA 7(a) and SBA 504 financing.
Effective July 4, 2026, eligible borrowers may benefit from these new SBA financing rules.
What Changed
Existing SBA 7(a) loans no longer reduce the amount of SBA 504 financing you may qualify for.
Previously, businesses with an existing SBA 7(a) loan had that loan count against the amount of SBA 504 financing available to them.
Now, eligible borrowers may still qualify for the full $5M ($5.5M for manufacturing and green energy projects) SBA 504 loan limit, even if they already have an SBA 7(a) loan or are applying for a SBA 7(a) at the same time. In many cases, this means borrowers may be able to access up to $10M in combined SBA financing or more in the case of manufacturing businesses.
Why It Matters
This change can help businesses:
- Finance day-to-day business needs with a SBA 7(a) loan
- Still access up to $5M in SBA 504 financing for commercial real estate, equipment, or other long-term fixed assets
- Pursue larger growth plans without existing SBA 7(a) financing limiting future 504 opportunities
*Note: Planning to use both SBA 7(a) and 504 financing? The order matters. SBA 7(a) loans are still limited by SBA 504 financing, so it’s important to structure the financing correctly. Dakota Business Lending can help you determine the best approach.
If you’re planning to expand your business, let’s talk about how these new SBA changes can benefit you!
Reach out to a loan officer in your area to get started.