SBA loans Archives - Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses

The SBA Raised the Ceiling. Is Your Business Ready to Walk Through the Door?

Admin — Thu, 11 Jun 2026 13:00:00 +0000

The Rule Change

The U.S. Small Business Administration (SBA) recently announced that, effective July 4, 2026, eligible borrowers can combine 7(a) and 504 loans to access up to $10 million in SBA-backed financing. That doubles the prior $5 million cumulative cap and, according to the agency, represents the highest combined lending limit in its history.

The structural change is significant. Until now, the two programs shared a single ceiling. For instance, a business with a $3 million 7(a) loan could only access $2 million through the 504 program. Starting July 4, each program carries an independent $5 million limit. A qualified borrower can access the full ceiling of both.

This gives eligible borrowers greater flexibility to pair long-term fixed-asset financing through the 504 program with working capital through the 7(a) program, without one reducing the other.

What Didn’t Change

Credit standards, documentation requirements, and underwriting timelines remain exactly where they were.

It is also worth noting that this is an administrative rule change, not a legislative one. This means that a future administration could revise it. Businesses weighing capital plans around the new ceiling should factor that context into their thinking.

The Readiness Question

As we noted last week, capital expenditure plans among small business owners hit their lowest level since November 2009, and regular borrowing sits at its lowest since November 2021. The timing of this rule change suggests the SBA recognizes the environment in which business owners are operating and is attempting to re-energize capital expenditures. That is a reasonable response to the data. It does not, however, change what lenders require of borrowers.

A higher loan limit benefits the businesses already prepared to use it. For everyone else, the binding constraint is not what the SBA will lend. It is whether the business is structured to qualify, present credibly to a lender, and carry the debt responsibly.

That preparation does not happen overnight, and it does not happen by accident.

Where to Start

If you want to understand where your business stands relative to lender expectations, a free discovery session is a good first step.

Owners who would benefit from a structured path to lender-readiness can explore our Becoming Bankable ® program. A comprehensive 12-module system that helps business owners master the financial systems, documentation, and strategies that lenders require.

More capital is available. The businesses that can access it will be the ones that prepared before they needed it.

The post The SBA Raised the Ceiling. Is Your Business Ready to Walk Through the Door? appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

SBA Refines Loan Options for Manufacturers with FY 2026 Fee Waiver

Admin — Thu, 02 Oct 2025 13:00:00 +0000

The Small Business Administration (SBA) has introduced the Manufacturing Loan Program (MLP), a dedicated track within its existing loan system. Rather than creating a new product, the program brings together two long-standing SBA tools, the 7(a) loan and the 504 loan, and applies them with refinements aimed at manufacturers. The SBA has also launched the Manufacturers’ Access to Revolving Credit (MARC), a new delivery method under 7(a) that provides revolving or term credit specifically for working capital.

Temporary Fee Relief

For Fiscal Year 2026 (October 1, 2025 – September 30, 2026), the SBA is waiving certain loan fees for manufacturers:

7(a) Manufacturing Loans: No upfront fees on loans up to $950,000.
504 Manufacturing Loans: No upfront fees and no annual service fees, regardless of loan size.

These temporary fee waivers reduce borrowing costs and may help manufacturers move forward with projects such as equipment upgrades, facility expansion, or workforce development.

For FY 2026, small manufacturers can access SBA-backed financing without paying upfront loan fees — a temporary window that lowers the cost of growth.

Why It Matters

Manufacturers often face large upfront costs when investing in machinery, technology, or new production lines. By adjusting existing SBA programs to better fit manufacturing needs and offering a temporary fee waiver, the SBA is giving smaller firms an incentive to evaluate projects that may have been delayed.

How to Access the Loans

7(a) and 504 Loans under MLP: These remain the mainstay for financing equipment purchases, real estate, or facility expansion. Manufacturers can use the SBA Lender Match portal to connect with approved lenders.
MARC Loans (new 7(a) method): Designed specifically for manufacturers (NAICS 31–33), MARC loans provide up to $5 million for working capital. They can be structured as term loans or revolving credit lines, but proceeds may not be used for ownership changes, debt refinancing, or taxes in arrears. SBA’s guaranty covers up to 75 percent (or 85 percent for smaller loans), with a maximum guarantee exposure of $3.75 million.

Next Steps for Business Owners

For manufacturers planning investments, FY 2026 may be a timely year to consider SBA-backed financing. The fee waivers are temporary, but the MLP framework suggests a longer-term focus on supporting U.S. manufacturing.

Are you unsure if your business is ready to apply? We can help you develop a lender-ready package that positions your company for success.
👉 [Schedule a discovery call today] to explore your financing options.

Download Loan Summary Matrix

The post SBA Refines Loan Options for Manufacturers with FY 2026 Fee Waiver appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.