The Small Business Administration recently announced a new rule that will allow eligible borrowers to combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing.
Details: Effective July 4, the rule:
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Increases the cumulative loan limit from $5 million.
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Allows small manufacturers, which can currently secure an unlimited number of 504 loans if each loan is tied to a distinct project, to apply for $5 million through the 7(a) loan program.
How it Works: Under the new policy, qualified borrowers who secure a 7(a) loan first may access up to $5 million through the 7(a) loan program and up to $5 million through the 504 loan program.