The Small Business Administration quietly changed one of the most important numbers in small-business finance.

On July 7, the agency said borrowers may now combine 7(a) and 504 loans for up to $10 million, up from the previous cumulative limit of $5 million. The policy went into effect July 4 and gives qualified borrowers a lot more room to pair working capital with long-term financing. SBA release

That matters because most growth projects do not fit neatly into one bucket.

You might need a 7(a) loan for working capital, inventory, or equipment and a 504 loan for real estate or another major fixed asset. Until now, the combined cap made that harder to scale. The new limit gives capital-intensive businesses more room to plan one expansion instead of stitching together half a solution.

The SBA said qualified borrowers who secure a 7(a) loan first may access up to $5 million through the 7(a) program and up to $5 million through the 504 program, for a combined total of $10 million in SBA-backed financing. The agency also said small manufacturers can now apply for $5 million through 7(a) and still use additional 504 financing on distinct projects.

For owners, the practical move is simple:

• Ask your lender whether your next project can be structured as a 7(a) and 504 combination.
• Map what part of the project needs working capital and what part needs longer-term fixed financing.
• Make sure your cash-flow model still works if the borrowing total goes up, because bigger credit is only useful if the debt is still manageable.

This is not a grant. That distinction matters.

More borrowing power does not automatically mean more growth. It means the SBA has made it easier for the right borrowers to finance bigger moves without leaving one side of the project unfunded.

For owners who have been stuck between a too-small loan and a too-big project, that is real news.

Sources: SBA release; SBA newsroom.