SBA's new $10M combined loan cap opens more space for business buyers

The Small Business Administration’s July 4 change lets buyers use up to $10 million across SBA 7(a) and 504 financing on the same project, doubling the prior combined limit. Regalis Capital says the shift matters most for buyers acquiring a company that also owns the building it operates from.

Why it matters: - The higher combined cap gives acquisition buyers more room to finance both a business purchase and the property tied to it. - Buyers of companies that own their real estate now have a cleaner path to use SBA financing for both assets in one deal. - The change can reduce the need for separate property financing, seller leasebacks or walking away from the building.

What happened: - The SBA raised the combined 7(a) and 504 limit to $10,000,000. - The new limit took effect July 4 after the SBA’s May 18 notice that it would double the cumulative cap. - Regalis Capital said the change is especially relevant for buyers acquiring a business that also owns its operating building.

The details: - A borrower can now reach up to $5,000,000 in each program on the same project, instead of $5,000,000 total across both. - The 7(a) program typically covers the acquisition of the operating business, including goodwill and working capital. - The 504 program covers long-term fixed assets, mainly commercial real estate and heavy equipment. - The 504 program is delivered through a Certified Development Company alongside a bank. - In Regalis Capital’s example, a $4,000,000 business purchase paired with a $3,000,000 building could now be financed with 7(a) for the business and 504 for the real estate, subject to equity injection requirements. - SBA’s separate equity injection rules take effect Oct. 1, 2026, under Information Notice 5000-880695: SBA Information Notice 5000-880695. - Regalis Capital said the figures are illustrative arithmetic based on SBA program limits as of Sept. 10, 2026, and are not an offer of credit or a commitment to lend. - Regalis Capital is not a lender, and actual terms depend on the lender, borrower and deal.

Between the lines: - The policy shift does not change the single-program cap, which still stands at $5,000,000 inside each program. - SBA Administrator Loeffler has publicly argued for raising that single-program cap, according to remarks reported by Forbes on July 27. - The practical effect is strongest for buyers where the operating business and the real estate are part of the same transaction. - Regalis Capital’s view is that the new limit pushes more deals back toward standard SBA structures instead of bespoke workarounds.

What's next: - Buyers should underwrite deals to the current rules and treat any further cap increase as a potential upside, not a planning assumption. - Lenders will still decide what qualifies based on debt service coverage, earnings quality and buyer equity. - Regalis Capital directs buyers to its free comparison guide on SBA 7(a) versus SBA 504: the guide.

The bottom line: - The new combined cap does not make every deal easier, but it does make business-plus-building acquisitions materially simpler to finance.