The U.S. Small Business Administration announced a policy permitting qualified borrowers to combine financing through its 7(a) and 504 programs for a cumulative total of up to $10 million. The July 7 release said the change took effect July 4.
Under the sequence described by the agency, a borrower securing a 7(a) loan first may access up to $5 million through that program and up to $5 million through the 504 program. The announcement explains that the change separates treatment of 7(a) balances from the 504 program’s cumulative limit.
The programs serve different financing needs, and eligibility, underwriting, and program rules still apply. The announced ceiling is not an offer of approval or a recommendation to borrow. Business owners should consult SBA’s current program materials and participating lenders for requirements specific to their circumstances.