The U.S. Small Business Administration (SBA) announced that starting June 1, 2025, the maximum loan amount for 7(a) Small Loans will be reduced back to $350,000.
Currently, the total loan limit for SBA 7(a) loans is up to $5,000,000, but since 2023, the threshold for Small Loans was raised to $500,000 to help small businesses gain easier access to capital. This was part of a modernization effort to improve SBA’s key working capital and fixed asset loan programs (like the 504 loan).
However, this increase will soon be reversed. According to SBA’s updated Standard Operating Procedures (SOP 50 10 8), the change is intended to better focus resources on truly small businesses and reduce lending risk.
