Double Your Borrowing Power | Bay Area Development Company

On May 18th the SBA announced that, beginning July 4, 2026, qualified borrowers can combine SBA 504 and 7(a) loans to access up to $10 million in SBA-backed funding. This is the first time these two loans have been available in combination (up to $5 million each) and is the largest expansion of small business lending capacity in SBA history.

What has changed?
Previously, 504 and 7(a) loans shared a combined limit of $5 million, which left some businesses in an either/or situation. Under this new policy, qualified borrowers now have the opportunity to leverage 504 and 7(a) loans in tandem. This powerful combination means they can access 504 financing for real estate and equipment plus 7(a) funding to support operations and other expansion needs.

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.

More power for small businesses.
As a practical matter, this shift means greater flexibility for small business owners and access to up to two times the SBA capital for their expansion projects and operations. By decoupling 7(a) loan balances from the 504 program, the SBA will deliver the freedom for borrowers to be strategic and take on much larger projects than before. This new structure is available to companies in all sectors and will be especially attractive to capital-intensive small businesses in industries including:

For manufacturers, the new policy will provide even more capital – up to $5.5 million in 504 loans – to boost production, expand their facilities, and create more jobs, all to meet the increased demand for goods.

Bay Area Development Company is excited about this new option and the opportunity it provides for small businesses to grow with confidence. Our team is here to answer your questions and explore the possibilities this policy creates for your business.