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As of 2026, the updated SBA (Small Business Administration) loan limits allow small business owners to borrow up to $10 million by combining SBA 7(a) and 504 loans. This represents the highest-ever limit possible for borrowers seeking SBA-backed funding. If you’re a small business owner, it may be wise to learn more about these new limits.
Key Points
• Small business owners can now borrow up to $10 million in SBA loans in 2026 by combining 7(a) and 504 loans.
• Individual loan limits range from $50,000 for microloans up to $5.5 million for specialized 504 loans.
• The increased maximum borrowing limit is achieved through loan stacking rather than by raising the limit on a single loan.
• While the SBA guarantees cover 75% to 85% of loan amounts if default occurs, borrowers remain personally responsible for repayment.
• The amount you can borrow in SBA loans typically depends on factors like your debt service coverage ratio, down payment, and valuations.
What Are SBA Loan Limits?
SBA loan limits establish the maximum amount of this kind of government-backed funding that a small business owner can access. As of July 4, 2026, that limit stands at $10 million. However, it’s worth noting that this level of financing is not available via a single loan. Instead, a borrower would need to get approved for and receive multiple loans to reach this maximum. Not all business owners may seek that amount of funding, nor will everyone who does necessarily be approved to borrow that much. The figure represents the highest possible amount that could be awarded.
To give some background, SBA loans are known for providing affordable funding to small businesses, and they’re available through several programs to meet different needs. Overall, they can offer more flexible terms (such as lower down payments and no-collateral options) than traditional loans as well as additional services, such as business education and counseling. When you’re considering a small business loan, SBA loans may be a useful option to explore.
SBA Loan Limits by Program
This chart documents the current SBA loan limits, from the standard 7(a) loan to SBA microloans. Keep in mind that only loans in the 7(a) and 504 programs can be combined to reach the $10 million maximum.
| Type of SBA Loan | Loan Limit | Best Uses |
|---|---|---|
| SBA 7(a) loan | $5 million | Working capital, real estate, equipment, debt refinance |
| SBA 504 loan | $5 million | Commercial real estate, equipment (such as heavy machinery) |
| SBA 504 Specialized loan | $5.5 million | Commercial real estate, equipment for qualifying manufacturing or energy-efficient projects |
| SBA Express/Export Express loan | $500,000 | Startups, equipment, debt refinance, development/expansion into foreign markets |
| SBA microloan | $50,000 | Startups and early-stage working capital, inventory expenditures |
| SBA Economic Injury Disaster (EID) loans | $2 million | Small businesses in declared disaster areas that are unable to get funding elsewhere |
Recommended: Getting a Million-Dollar Business Loan
The 2026 SBA Combined Loan Limit Increase
As of July 4, 2026, the Trump administration SBA loan change doubled the limits from a maximum of $5 million to $10 million via loan stacking. The government noted that it raised the limits to help boost capital-intensive enterprises. It specifically stated that it hoped that these loans backed by the SBA would support businesses in such fields as energy, construction, logistics, food production, and other forms of manufacturing.
How Loan Stacking Works
The new SBA loan limit doesn’t mean that a single loan of $10 million is potentially available to small business owners. Rather, this amount can only be attained through multiple loans, or stacked loans. Here’s an example:
• Given that an SBA 7(a) loan limit stands at $5 million, that’s the highest amount that could be borrowed.
• A small business might also qualify for a 504 SBA loan for $5 million, which is the highest amount possible for that loan.
• The combined total for a small business that’s approved for both of these SBA loans would be $10 million.
By stacking loans in this way, a borrower could now access twice as much in funding as they could have with the previous limit. It’s not a matter of SBA 504 vs.7(a) loans, but rather using both programs.
SBA Guaranty Exposure and What It Means for Borrowers
SBA guaranty exposure refers to the fact that if a small business loan borrower defaults (meaning they don’t repay their debt), the SBA steps in and covers a set amount of the loan. Typically, this is 75% to 85% of the principal balance for 7(a) loans. Usually, the 85% applies to loans up to $150,000, and for loans larger than that, the percentage drops to 75%. The lender is responsible for the other 15% to 25%.
However, it’s important to note that this doesn’t erase the debt that the borrower carries. Rather, it means that the bank is no longer owed the money; the federal government is. The debt has been transferred. Business owners with a stake of 20% or higher are typically required to sign an unlimited personal guarantee and may risk losing their savings, real estate, and personal property to repay what is owed. Also note that debt canceled due to default can be considered taxable income.
It’s wise to borrow responsibly with SBA loans, as with any other form of credit, to avoid worst-case scenarios.
What Determines How Much You Can Actually Borrow
If you’re considering applying for an SBA loan, how much you can actually borrow will likely depend on certain factors, such as the cap for the kind of loan you’re looking at, your down payment, and your cash flow. Specifically:
• Your debt service coverage ratio, or DSCR, which must be at least 1.25, meaning your annual operating cash flow must be 1.25 times greater than your total annual debt payments
• Down payment, which may be 10% to 20%. If you have $10,000 available as a down payment, for instance, that could limit your loan amount to $50,000 to $100,000.
• Valuations. If you plan to use the funds for a real estate purchase, it must appraise at the value you state on your application. If you’re planning to use the financing as working capital, you’ll likely need to provide documentation regarding your specific financial needs and your business projections.
• The maximum amount for the loan you’re seeking. As noted in the chart above, SBA loan caps can range from $50,000 to $5.5 million.
These points can help you understand how much of the SBA lending limits you may actually be able to borrow.
Recommended: Guide to Microloans
How To Apply for an SBA Loan
To apply for an SBA loan, prospective borrowers will need to work with an SBA lender, not with the Small Business Administration itself. The following steps are usually taken, whether the applicant is seeking a microloan as a startup or aiming for a higher level of funding to grow an established enterprise:
1. Determine which SBA loan type you qualify for and want to apply for.
2. Gather the required documentation for the loan, which may include financial statements (P&L sheets, balance sheets, cash flow projections), tax returns, and verification of assets/collateral. Business documents will also likely be needed. These can include business plans (noting how financing received would be used), articles of incorporation, commercial leases, and more.
3. Find a lender and apply. It can be wise to look for SBA Preferred Lenders (your loan processing may move ahead more quickly) and to use the SBA Lender Match tool to find appropriate lenders, such as those with a particular interest in funding your market sector.
4. Navigate the underwriting process. During this phase of your application, the lender will evaluate your application and typically perform a credit check. There’s no universal minimum credit score needed; each lender has its own guidelines. In general, a score of 640 or 680 or higher can help you secure financing. This stage of your SBA loan application process can take 30 to 90 days from the time you apply until you learn the decision and move through the closing if approved.
These are the typical steps to apply for an SBA loan. However, there can be variations. It can be wise to keep in close communication with your lender to stay on top of what additional documents might be needed and to manage your expectations. It’s also worth noting that if you aren’t approved for an SBA loan, you might look into other options, such as grants or business lines of credit.
The Takeaway
Since July 2026, the maximum amount you can borrow in SBA loans increased from $5 million to $10 million. This amount can only be reached by stacking multiple loans. However, there are several different types of SBA loans to acquaint yourself with, and their limits vary from $50,000 to $5.5 million. These loans can provide favorable terms for small business owners looking to launch or grow their enterprise. If SBA loans aren’t the right fit for you, other forms of financing may be available.
Ready to grow your business? SoFi Small Business Loans can give you fast access to the capital you need. Check your eligibility in minutes.
FAQ
What is the maximum SBA 7(a) loan amount?
For a 7(a) loan, the max SBA loan amount that can be secured is $5 million. To phrase it in another way, the SBA 7(a) loan limit is $5 million.
Can a business combine a 7(a) loan and a 504 loan?
Yes, a business can combine these two SBA loan types. Due to the 2026 Trump administration SBA loan change, an SBA 7(a) loan and a 504 loan can be stacked up to a max SBA loan amount of $10 million. This can be achieved by accessing a maximum loan amount of $5 million per each type of SBA loan.
What is the SBA microloan program limit?
The limit for an SBA microloan program is $50,000 per loan. These loans can be a helpful source of financing for small businesses seeking to launch or grow.
Does a larger loan amount reduce the SBA’s guaranty percentage?
Yes, a larger loan amount can reduce the SBA’s guaranty percentage from 85% to 75%. Typically, for loans up to $150,000, the guaranty is 85%. If the loan is above that amount, the SBA’s guaranty percentage can lower to 75%. The guaranty percentage of the loan is the portion of the principal that the SBA will repay to the lender if the borrower defaults.
Is loan approval guaranteed if I qualify for the maximum amount?
SBA loan approval is not guaranteed (nor is any loan approval, typically), even if an applicant qualifies for the maximum amount. The lender needs to fully evaluate each application and consider such factors as credit score and history, assets, cash flow, and risk factors before making their decision. Qualifying for the SBA lending limits does not ensure funding.
Photo credit: iStock/Nuttawan Jayawan
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