There’s a compelling proposal circulating in Washington that would raise the SBA’s maximum loan limits from $5 million to $10 million. It’s intended to supercharge a narrow segment of the economy (specifically, small manufacturers) but it will not apply across the board. For most businesses, nothing changes yet.

What’s on the Table

In May 2025, bipartisan legislation called the Made in America Manufacturing Finance Act was introduced by House and Senate small business leadership. If passed, it would double the maximum SBA 7(a) and 504 loan amounts to $10 million, but only for manufacturers. The goal is clear: inject capital into domestic production, support supply‑chain resilience, and accelerate the return of industrial activity to U.S. soil.

This is not the first time such an idea has surfaced. The LIONs Act, likewise proposed earlier in 2025, also sought to raise SBA loan limits to $10 million but targeted a broader range of small businesses, with additional incentives like a 75 % guarantee to make these loans more attractive to lenders.

Why Only Manufacturers for Now?

Manufacturing has become a strategic priority for the current administration’s “Made in America” agenda. The SBA reports that 7(a) loan volume for manufacturing climbed by 74% in the administration’s first 100 days, indicating strong demand. Sector‑specific credit support is seen as a targeted lever to reinforce economic recovery and buoy industrial competitiveness.

Advocates argue that allowing larger loans to manufacturers enables them to modernize equipment, expand production lines, and hire new staff, all critical for competing domestically and globally.

Common Business Owners Need to Know

For non‑manufacturing businesses, the loan cap remains at $5 million. That includes service providers, retailers, professional firms, and most others. Even with the proposed changes, increased caps would not benefit them, unless further legislation passes.

Manufacturing businesses should be ready to show they qualify if the bill becomes law. This means being prepared with strategic plans, asset projections, and clear use‑of‑funds narratives that align with federal intentions of domestic growth and job creation.

What This Means Strategically

Manufacturers Gain Leverage
The proposed bump could reshape growth trajectories. Builders, fabricators, equipment manufacturers, and industrial suppliers could access capital aligned with their scale, without resorting to traditional or private lenders.
Others Must Stay Sharp
If you don’t fall under the manufacturing umbrella, use this moment to refine deal structures, explore community advantage programs or microlenders, or consider creative equity or mezzanine financing options.
Watch the Policy Landscape
Momentum around this legislation underscores how industry priorities can shift program rules. Businesses should regularly review new SBA announcements that may expand eligibility or introduce pilot programs in other sectors.

A Moment of Opportunity

The proposed doubling of SBA loan caps to $10 million offers manufacturers a powerful new tool to invest and grow. But until the bill becomes law, it remains aspirational. For most small businesses, the current cap remains in place.

Need help navigating what these changes mean for your business?

Whether you’re a manufacturer exploring new funding thresholds or a service-based business working within current limits, having a strategic plan in place is essential. We can help you build a business plan that speaks directly to lenders.

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