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COLEMAN: Small Business Lender News of the Day for Monday, July 28, 2025

July 29, 2025

Michigan Business Network

Main Street Monday: SBA $10 Million Loan Cap Passes Committee, Moves to Full Senate Vote

by Bob Coleman Founder & Publisher

The Senate Small Business & Entrepreneurship Committee has given bipartisan approval to a bill that known as the Made in America Manufacturing Finance Act (S. 1555) — the legislation proposes raising the loan limits for SBA 7(a) and 504 loans from $5 million to $10 million.

Timing? I don’t know but if I had to guess I would say implementation will begin October 1, the beginning of the federal government’s fiscal year 2026.

10 Key Facts About the SBA Loan Cap Increase

1. Bill Overview

The Made in America Manufacturing Finance Act doubles the loan limit for SBA 7(a) and 504 programs, specifically aimed at small manufacturers.
The increased cap—from $5 million to $10 million—is designed to provide small-scale domestic producers with the funds they need to grow and compete.

2. Senate Committee Approval

On July 17, the Senate Small Business & Entrepreneurship Committee approved the bill with strong bipartisan backing.
Key modifications, championed by Ranking Democratic Member Senator Ed Markey, introduced safeguards to ensure program integrity and job creation.

3. Bipartisan Support

The legislation was authored by Sen. Joni Ernst (R-IA) and Sen. Chris Coons (D-DE), exemplifying robust cross-party collaboration.
In the House, the bill is sponsored by Rep. Roger Williams (R-TX) and Rep. Carol Miller (R-WV).

4. Broad Business Community Backing

Small manufacturers, banks, and trade organizations in states from Iowa to Arizona have rallied behind the bill.
Industry leaders say it has the potential to “supercharge innovation, collaboration, and production,” giving U.S. businesses a competitive edge.

5. Economic & Supply-Chain Impact

By increasing loan limits, the SBA aims to empower manufacturers to:
Invest in new equipment
Enhance workforce skills
Reshore critical supply chain operations

6. First Loan Limit Increase in Over a Decade

This bill marks the first inflation-adjusted loan limit increase in more than 10 years for SBA-backed manufacturing loans.

7. SBA Tools & Oversight

SBA Administrator Kelly Loeffler supports the bill, highlighting its alignment with the agency’s broader goals.
The SBA also announced a new online tool, “Make Onshoring Great Again,” to help connect small manufacturers with domestic suppliers.

8. Program Integrity Safeguards

To mitigate risks, Democrats on the committee added provisions ensuring that larger loans remain tied to strict job creation metrics and fraud prevention measures.

9. Next Steps in Congress

Having passed the Senate committee, the bill now heads to the full Senate for a vote.
If approved, it will move to the House of Representatives, where similar legislation already enjoys strong support.
Finally, it will require President Trump’s signature before becoming law.

10. Part of a Broader U.S. Manufacturing Agenda

This legislation complements several federal initiatives aimed at revitalizing U.S. manufacturing, including:
Tax reforms
Tariff adjustments
Programs like CHIPS Act and Inflation Reduction Act (IRA)

Mastering SBA 7(a) Delinquency: Insider Tips for Servicing Loans Past 31 Days — Webinar 7/29

One of the reasons SBA raised 7(a) guaranty fees in spring is that the agency is seeing a spike in delinquencies and charge-offs, which lead to guaranty purchases — and greater cash outflows from the US Treasury. Faced with a deterioration in your SBA 7(a) loan portfolio, now is the time to be proactive and ensure you are taking the prudent lending steps demanded by SBA in servicing delinquent loans.

Coleman’s award-winning SBA Servicing and Liquidation expert webinar instructor, Lance Sexton, will lead a discussion of successful insider tips he has accumulated over the years to manage an SBA loan that has passed 31 days delinquent.