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.

Read more and register here

Avoid Unforced Errors: Top 20 Reasons SBA Denies or Repairs the 7(a) Guaranty — 8/6

Avoiding SBA guaranty denials and repairs starts with knowing where things go wrong. This webinar dives into the top 20 reasons SBA 7(a) guarantees are denied or repaired—from collateralization errors and lien issues to improper use of proceeds and documentation gaps. You’ll learn how to spot and prevent these common mistakes before they impact your bottom line.

Get practical, real-world strategies to protect your SBA portfolio, improve your risk review processes, and prepare airtight Universal Purchase Packages. Whether you’re underwriting, closing, servicing, or handling liquidation, this session will give you the tools to strengthen compliance, avoid costly missteps, and confidently navigate SBA requirements.

Read more and register here

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UPCOMING COLEMAN WEBINARS

Mastering SBA 7(a) Delinquency: Insider Tips for Servicing Loans Past 31 Days — Webinar 7/30

Avoid Unforced Errors: Top 20 Reasons SBA Denies or Repairs the 7(a) Guaranty — Webinar 8/6

SBA Insurance Compliance Under SOP 5010 8: Essential Requirements for Underwriters and Closers — Webinar 8/13

Lending Conference Schedule 2025

America East – August 4-6 (Atlantic City, NJ)

FLAGGL – September 17-19 (Orlando, FL)

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B2B Finance Expo – October 28-29 (Las Vegas, NV)

COLEMAN SOP LIBRARY

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eBook Available for $14.95

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SBA 5010 8 (6/25) SBA Loan Policy

Paperback available on Amazon for $29.95

SBA 5057 3.1 (12/24) SBA Loan Servicing and Liquidation

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SBA 5056 1 (11/23) SBA Lender Policy

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