New SBA Loan Limit Increases Opportunity for Manufacturers
The Small Business Administration (SBA) has expanded its support for United States based production with a major increase to its lending limit. On December 1, 2025, the SBA announced that the loan cap for small manufacturers under its 7(a) and 504 programs has doubled from $5 million to $10 million through the Made in American Manufacturing Finance Act (H.R. 3174).
What’s Changing:
Manufacturers can now access up to $10 million through SBA 7(a) and 504 programs, double the original limit.
This increase only applies to businesses with all operations based in the United States. If any part of your production happens overseas, you may still fall under the old limit.
This change supports the SBA’s “Made in America” initiative, designed to bring production home, cut red tape, and strengthen domestic supply chains.
Why It Matters:
For years, small manufacturers have struggled with limited access to capital. Whether you are looking to purchase new machinery, upgrade equipment, expand the factory floor, or plan an acquisition, financing has often been a roadblock. The new $10 million limit removes that barrier by unlocking capital and making it easier for smaller businesses to scale up and stay competitive.
By increasing access to financing for small, domestic manufacturers, this change supports the objective of reviving U.S. based production and creating a stronger supply chain.
What to Keep in Mind:
Eligibility: To qualify, all manufacturing operations must be physically located in the United States. If your production involves overseas suppliers or factories, be aware that you may still be subject to the old cap. Additionally, eligibility will be dependent upon lender review of your historic financial performance and available liquidity.
Uses: The extra capital can be used to acquire a new business, purchase equipment, expand facilities, or scale production.
Timing: Lenders and financial institutions are still adapting to this change. Acting early could help you secure more favorable financing before demand spikes.
What This Means:
This change is a big win for manufacturers, especially for those considering an acquisition or looking to improve their existing operations. This initiative will further encourage companies to consider onshoring production, which in turn strengthens local economies, supports skilled labor, and improves supply chain efficiency.
If you are considering an acquisition, equipment purchase, or expansion in the manufacturing industry, True North Business Funding can help you evaluate your financing options under the new SBA rules. The True North team specializes in SBA lending strategies and works closely with owners and buyers to structure deals that best align with their goals.
To learn more about how the new $10 million SBA limit might apply to your plans, contact Ture North Business Funding for a one-on-one conversation.
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