The Small Business Administration (SBA) has initiated a new rule that allows eligible borrowers to get up to $10 million in combined financing from 7(a) and 504 loan programs, the agency said in a May 18 statement.
The 7(a) initiative is the SBA’s primary business loan program that provides financial assistance to small businesses and has a maximum disbursal limit of $5 million per borrower. The 504 program provides long-term, fixed-rate loans for major fixed assets, such as land, new facilities, and machinery. The maximum 504 loan limit is $5.5 million.
Currently, borrowers can have only $5 million cumulatively in 7(a) and 504 loans. The new rule doubles this limit to $10 million, raising SBA’s maximum financing for small businesses to the “highest level in agency history,” SBA said….