The maximum SBA 7a loan amount could be anything from $5 million to $9 million. 

The maximum SBA 504 loan amount could be anything from $11 million to $30+ million.

Both of these maximums could go higher if current legislation gets passed.

If these amounts look nothing like what you have read or heard, I can explain…

SBA 7a Maximum Loan Amount

The maximum “SBA 7a loan” could be $5 million or it could be $9 million.

I put “SBA 7a loan” in quotes, because although most lenders will only finance a max of $5 million, there are lenders who will stack a conventional loan behind a max 7a to finance larger projects and while most lenders who will do this will max out at $7 million combined, some (for the right deal) will go as high as $9 million.

Additionally, as explained below, a borrower can have 2 max 7a loans for different businesses, which could mean $10 million or more. I say more, because again, if the borrower was truly strong enough, and had 2 very solid transactions, then a lender could stack (or piggyback) a 2nd loan behind two different max 7a loans to lend them well over $10 million combined. This would be rare, but it is entirely possible.

And…if the legislation linked to above gets passed, then Manufacturers who make their products entirely in the US would be eligible for 7a loans of $10 million (or more if lenders will offer a 2nd behind a $10 million first).

There is also speculation that the “regular” 7a loan limit could be bumped to $10 million, but that is simply a rumor at this point.

SBA 504 Maximum Loan Amount

Figuring out the maximum SBA 504 loan amount is more difficult, becuase the 504 “program” is more complicated as it is already a 2-loan structure where the max loan amount is affected by:

• the amount of down payment/equity
• whether or not the borrower is a manufacturer
• whether or not it is a “green” project
• the type of property being financed – multi-use/multi-purpose or single-use/special purpose
• whether or not you own multiple businesses in different industries

So, what is the max?  It depends on how you define “maximum SBA 504 loan amount.” It could be $5 million, $10 million or $15+ million or more.

This is because technically the actual 504 loan is just the 2nd mortgage or loan that is part of the aforementioned 2-loan structure.

Almost everywhere you look you will see the max 504 loan listed as $5 million, but this is very misleading, because while it is true that the maximum SBA loan amount under the 504 program is $5 million, the “504 loan” is technically only the 2nd loan of the 2-loan structure and only covers 30% to 40% of the financing and the rest is a conventonal first mortgage or loan...so, if you are getting a $5 million 2nd loan or mortgage, you are also getting at least a $6 million first loan or mortgage and financing a project north of $12 million.

This is because the typical 504 loan structure is a 50/40/10, meaning the first mortgage or loan is 50% of the project, the SBA 504 2nd is 40% and you need 10% equity. I won’t go into all the nuance re: when the structure would be 50/30/20 or 50/35/15 or when the first mortgage or loan might be at 55% or 60% LTV or LTC, but you can get more info on that here: SBA 504 loans.   

Admittedly, this can all be somewhat confusing.

SBA Loan Limits for Manufacturers

If you are a manufacturer the max 2nd loan is $5.5 million AND, you can have up to three $5.5 million 2nds (or a total of $16.5 million in 504 2nds) across multiple projects, which means you could access over $40 million in total SBA 504 financing across multiple locations for your business. 

But wait, there’s more 😉

If a bill that is in Congress as of January 2026 gets approved, then the maximum SBA loan amount (for the 2nd loan or mortgage) for US Manufacturers whose entire process is US-Based, can get 504 loans of up to $10 million. And again, we are talking about just the 2nd mortgage or loan, so a $10 million 2nd makes very large projects financeable. FYI: this is not the same “manufacturer guideline” as above. It would be a new guideline only for manufacturers whose make their products entirely in the U.S.

See this post: SBA Loans for Manufacturers to learn more about it, because the legislation seems to be getting a lot of traction.

As you can see, this is a somewhat complicated subject, so I will start with the simplest answer/scenario first…

Max SBA Loan For Business Purchase/Buying A Business, Partner Buyout or Partner Buy-In

If you need a business purchase loan (i.e. only goodwill/blue sky, non-real estate assets), or perhaps you are buying out a business partner or taking advantage of the new SBA Partner Buy-In option, then the answer is pretty straightforward:  you can borrow up to $5 million using the SBA 7a program.

I say “pretty straight forward,” because the SBA loan maximum for a borrower with 2 businesses is actually $5 million per business due to the fact that the SBA rules allow a borrower to have up to $5 million in SBA 7a loans in 2 seperate industries for a total of $10 million as long as the businesses are in different industries, meaning the first 3 digits of the NAICS code of each business must be different.

It is also important to keep in mind that when discussing the SBA loan limit that you can have numerous SBA loans for a total of $5 million or $10 million.

For instance, you could own one business with 5 different locations, all with different size SBA loans that total $5 million and also own another business in a different industry/different NAICS code with just one loan of $5 million for a total of $10 million, but that is not all…

BECAUSE if you have a strong business (or transaction) with many of the qualities an SBA lender likes to see (relevant experience, good credit, solid cash flow, additional real estate collateral, solid post-closing liquidity, etc.), then it is possible to get an “SBA max loan” of up to approx $9 million with certain lenders who will put a conventional (un-guaranteed) 2nd loan behind the SBA guaranteed first in order to make much larger transactions work.  (See bottom of this post for short definition of the SBA Guaranty). 

There is some nuance to all of this.

For starters, there is a very small percentage of lenders that will allow this structure, but they are very active in approving stronger transactions with the right risk profile.

The majority of lenders are much more comfortable with a 2nd loan that is only $2 million so, $7 million in total loans when combined with a maximum SBA 7 loan (or loans), but there are a few who will allow you to max out higher – even to $9 million.

It is very much “case by case” but it is real.

Get in touch if you have questions about this: jking (at) greencommercialcapital (dot) com

Maximum SBA Loan for Commercial Real Estate/Commercial Property – SBA 504 Loan Limits*

The typical maximum SBA loan amount for real estate, heavy equipment or long life machinery under the 504 program is approximately $16 million with 20% down/20% equity or $11.25 million with 10% down/10% equity UNLESS you have a transaction (or transactions) like some of those mentioned at the top of this post. 

FYI: The 504 program allows for larger loans than the 7a and also requires a down payment, whereas the 7a allows 100% financing in numerous situations).  

Interestingly, the maximum SBA 504 loan is dictated by the size of the 504 second loan or mortgage. 

The SBA guaranteed portion of any SBA 504 loan financing offer is actually just the second mortgage or loan, which has a max amount of $5 million unless your loan qualifies as an SBA Green Loan or if you are a manufacturer, in which case the maximum 504 loan amount is $5.5 million.

FYI:  the SBA defines a manufacturer as a “for profit” U.S.-based business that produces a product using mechanical, chemical or physical processes.  i.e.  a business that makes something and sells it.

The 504 loan “size” is determined by an SBA rule that states that the 504 (2nd) loan can be no more than 30% to 40% of the total financing for a commercial property (or equipment).  And since the most traditional structure for a 504 loan transaction is what is referred to as “50/40/10” with an SBA lender providing the “50” in the form of a first mortgage and the SBA** providing a second mortgage for the “40,” we are left with a simple math equation to back into the “maximum SBA loan amount.”

SBA 7a Maximum Loan Amount

SBA 7a loan requirements are very different from the 504, and the program is far more popular due to the flexibility it provides, the higher guaranty the lenders get from the SBA and because (frankly) it is typically way more profitable for lenders.

For most lenders, the maximum SBA 7a loan limit is $5 million, but there are a few unique lenders who, as alluded to above, will actually consider “piggybacking” their own conventional 2nd mortgage behind a $5 million 7a loan in order to get a larger transaction closed.

These lenders will only consider this for “strong” transactions whether it is a business acquisition, partner buyout or buyin or a real estate loan (or all of the above) and they will do so up to $10 million with one potential caveat being that in some cases you might need additional collateral (typically equity in real estate).

Additional collateral might be needed if there is a minor weakness in the transaction (cash flow slightly lower than the lender would prefer, borrower’s experience slightly lacking, credit issues, etc.)  or in some cases if the loan is for ground-up construction and/or if too much of the loan is unsecured.

Each loan is different and your mileage may vary, but the key takeaway is it is currently very possible to borrow between $7 and $9 million using the SBA 7a loan if your loan request has enough positives/strengths.

SBA 504 Loan Limits

Example of max SBA Loan with a “standard” SBA 504 Loan Structure and 20% Down:

Purchase Price of Building:  $20 million

50% First Mortgage: $10 million

30% SBA 504 Loan: $6 million

20% Down Payment: $4 million

Maximum SBA Loan – “standard” SBA 504 Loan Structure with 10% Down:

Purchase Price of Property: $12.5 million

50% First Mortgage: $6.25 million

40% SBA 504 Loan: $5 million

20% Down Payment: $1.25 million

Again, these numbers can be tweaked slightly higher if you are getting an “SBA green loan” or if you are a manufacturer and technically they could go even higher if a first mortgage lender were willing to go above 50% of the total “project cost” (which lenders will do for businesses with truly strong financials) as the SBA actually allows lenders to go up to 60% at their discretion.

Max SBA Loan Amount With “Lower Guaranty”

An SBA lender can also opt to take a lower “guaranty” under the 7a program.  The typical guaranty is 75%, but an SBA lender can opt for a lower guaranty in order to acheive a higher loan amount for larger transactions.  You will occasionally see lenders do this to accommodate a transaction over $5 million.  It is not typical and again, reserved for only stronger transactions but it is something that is done.

Similar to the 504, this maximum SBA loan amount is calculated by “backing into” an amount higher than $5 million based on the amount of the SBA guaranty.  The maximum SBA loan guaranty to any business is $3.75 million and for most lenders this equates to a maximum loan amount of $5 million because if you divide $3.75 million by .75 (because of 75% the SBA guaranty) you get $5 million.

So, if a lender feels strongly enough about a particular borrower/transaction they can take a guaranty lower than the standard 75% and leverage it into a higher loan amount.  For instance, let’s say a borrower needed a loan amount greater than $5 million and the lender did not want to provide a 2nd mortgage.  The lender instead could take a lower guaranty and possibly make it work.

As an example, last year one of our lenders offered 100% financing to a doctor looking to build a new office with a total loan amount not to exceed $5.575 million.  They got to this amount by taking a guaranty of just 67.3% vs. the usual 75% because they felt like the doctor was very established, had great cash flow, credit, etc. and was therefore worth the risk.

How Do SBA Loans Work?

Will all this discussion about the SBA guaranty, I should clarify what it is.  Basically, the SBA operates like a mortgage insurance company.  SBA approved lenders make loans that the SBA guarantees up to a certain percentage of the loan amount as long as lenders underwrite according to the SBA rules, so in the case of a borrower default the SBA pays the lender a percentage of what is still owed on the loan which could be anywhere from 30% to 90% of the total financed amount depending on whether it is a 504 or 7a loan and how it was originally structured.

This is very similar to an FHA loan if you’ve ever had one for a home or investment property.  With FHA loans there is an “MIP” (Mortgage Insurance Premium) that is a small percentage of the loan amount, paid by the borrower and rolled into the loan.  The SBA works the same way.  Every borrower that gets either a 7a or a 504 loan pays a fee that is rolled into the financing.  Without this fee the programs would not exist.

Incidentally, there is also a way to increase your odds of getting a large 7a loan amount and that is if you are an exporter since exporters get a 90% guaranty from the SBA, so in this case, the lender is making a loan and getting a $4.5 million guaranty which dramatically reduces their risk on a loan and as you might imagine, increases the odds for approval.

*The SBA programs CANNOT be used for “investment property” financing (other than self storage, Boat and RV storage, hotels and in some cases RV Parks, campgrounds and marinas if the majority of the income is derived from “short term stays”), so you cannot finance multi-family, apartments, multi-tenant properties, etc. UNLESS your business legitimately occupies at least 51% of the total rentable square footage of the building.  For example, if you need a loan to buy a grocery store that occupies more than half of a strip center, then the entire strip center is financeable with the SBA.  Or if you are purchasing or refinancing a building that your business will occupy 1 or more floors of and there are residential or commercial tenants upstairs then that can work, but your business must legitimately occupy more than half of the total square footage. Additionally, there are a SBA-clone-type programs that offer SBA-type leverage in different states where you could potentially purchase a property where the owner occupying business occupies just 30% to 40% of the square footage, so keep that in mind as well. 

Anyway, as you can see, all of this gets a little complicated, so if you have what you think is an SBA-eligible transaction and you are trying to figure out the maximum SBA loan amount and how it could possibly work for you, then feel free to get in touch: jking (at) green commercial capital (dot) com or you can use this form on our website: contact Green Commercial Capital/John K

**The SBA 504 second is underwritten and packaged by a Certified Development Company (CDC), a local nonprofit certified by the SBA to originate 504 loans. The first mortgage is underwritten by a bank or other private lender, while the CDC portion is funded through the SBA-backed 504 debenture program.