What is the SBA 7(a) maximum loan amount?

The SBA states that the maximum 7(a) loan is $5 million. You apply with a lender, not with the SBA. A July 2026 SBA announcement describes combining 7(a) and 504 for up to $10 million in defined cases, when the 7(a) loan comes first. That note is a policy description, not an approval. Confirm the 504 cap with the CDC.

The SBA calls 7(a) its primary business loan program. It provides a guaranty to lenders so they can finance small businesses. The 7(a) page says proceeds can be used for a complete or partial change of ownership, for real estate, for machinery and equipment, for working capital, and for refinancing current business debt, among other uses. The SBA says you will always work directly with the lender and not with the SBA. On an acquisition, lenders look at 7(a) when the deal fits, including goodwill. That does not make every acquisition a 7(a) loan. Banks and private credit are in the same process for the deals that do not fit.

The 504 program is different. The SBA says certified development companies originate a 504 loan with a senior lender, for major fixed assets such as owner-occupied buildings and long-term machinery. Working capital and inventory are not eligible 504 uses. Speculation and investment in rental real estate are not eligible. If the real estate is part of buying the company, the acquisition is the starting point, and 504 may be one piece of the structure rather than the whole of it.

The July 2026 announcement, titled around small businesses becoming eligible for $10 million in SBA financing, describes combining the two programs. Read it on sba.gov before you build a sources-and-uses page around $10 million. A lender still has to want the credit, and the SOP that applies to the loan number still governs the structure. Siddwell does not approve either number.

Keep the numbers attached to the page that states them. The 7(a) page states a $5 million maximum and says you apply with a lender, not with the SBA. The 504 page states a maximum 504 loan of $5.5 million and also introduces the program as financing of up to $5 million, so the cap for a project is a question for the certified development company, not a figure to average. The July 2026 announcement describes combining 7(a) and 504 for up to $10 million in defined cases. A combined structure is two processes. It is not a $10 million 7(a) loan, and it is not an approval. Siddwell does not set any of these caps and does not lend under any of them.

Siddwell is an AI-native investment bank for privately held US companies with $1M to $100M in revenue, doing sell-side M&A and capital advisory.

Siddwell can put SBA lenders and other lenders in one process when the deal fits. The lender decides the amount. Siddwell is not an SBA lender.