The Small Business Administration (SBA) has announced a policy, effective since July 4, that allows businesses to combine 7(a) and 504 loans to secure up to $10 million in funding.
The 7(a) loan program provides financial assistance of up to $5 million to help small businesses acquire real estate, finance equipment purchases, access working capital, and expand operations. The 504 loan program provides long-term, fixed-rate financing to acquire major fixed assets that promote business growth and create jobs, with a maximum funding of $5.5 million. A borrower could previously only take $5 million cumulatively from both programs. However, the new rule doubles this combined loan limit to $10 million, the SBA said in a July 7 statement.
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