The 2026 change
The SBA announced that eligible borrowers may combine up to $5 million through the 7(a) program with up to $5 million through the 504 program, creating a cumulative SBA-backed financing capacity of as much as $10 million. The change took effect July 4, 2026.
Why the combination matters
The two programs solve different financing problems. A 7(a) loan can support a broad set of business purposes, including working capital and acquisitions, while 504 financing is built around qualifying fixed assets such as owner-occupied real estate and major equipment. Combining them can help a capital-intensive project preserve working capital while financing long-lived assets separately.
What does not automatically increase
The policy does not mean every borrower qualifies for $10 million, every lender offers both programs, or every project can use both structures. Eligibility, credit underwriting, collateral, use-of-proceeds rules, lender appetite and SBA program requirements still govern the actual transaction.
Planning implications
A business considering a large expansion should separate its capital plan into fixed assets, acquisition costs and working capital, then compare whether one conventional loan, one SBA program, or a coordinated 7(a)+504 structure produces the cleanest financing mix.
Primary sources
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