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Big news is brewing in the world of small business financing — SBA loans for manufacturers may soon double from $5 million to $10 million under a new legislative proposal. This potential change could significantly reshape access to capital for small and mid-sized manufacturing businesses across the United States.
If you’re in the manufacturing space — or planning to acquire or expand one — here’s what you need to know about this game-changing update and how it could affect your growth plans.
The Made in America Manufacturing Financing Act: A Major Step Forward
A new bill, the Made in America Manufacturing Financing Act, is making waves in Washington. Sponsored by Senator Joni Ernst and Congressman Roger Williams from Texas, the bill’s mission is clear:
Strengthen U.S. manufacturing and supply chains by expanding SBA loan limits for small manufacturers.
Under this proposal, the SBA 7(a) and 504 loan programs — already two of the most powerful tools for small business financing — would increase their maximum limits from $5 million to $10 million.
This expansion would apply specifically to manufacturing businesses, targeting those with NAICS codes in sectors like:
- Food and beverage processing
- Apparel and textile production
- Plastics and chemical manufacturing
- And other small manufacturing operations
These industries form the backbone of American production and innovation, and this legislation aims to give them the resources needed to expand, modernize, and compete globally.
Why This SBA Loan Expansion Matters
Currently, SBA loans are capped at $5 million for both 7(a) and 504 programs — which can limit opportunities for larger or capital-intensive businesses. By doubling the maximum, manufacturers could access the funding they need for:
- Equipment purchases
- Facility acquisitions or expansions
- Working capital
- Refinancing existing debt
If passed, this would unlock millions in additional funding capacity, allowing manufacturers to take on larger projects and scale faster.
For example, under the SBA 504 loan program, which includes a first and second mortgage structure, the “second” portion could go up to $10 million. That means we could start seeing $30 to $40 million manufacturing deals — a massive jump from current norms.
What This Means for Business Owners
While this proposal is still in its early stages, the momentum behind it is significant. SBA Administrator Kelly Laughler has already voiced support, and early indicators suggest bipartisan interest in strengthening domestic manufacturing.
In fact, early data shows SBA 7(a) loan approvals for manufacturers have risen 74% in the first 100 days of this fiscal year — signaling strong demand for capital in this sector.
If approved, the new limits could mean:
- Easier access to large-scale financing for manufacturers
- Greater support for supply chain resilience
- Expanded opportunities for job creation and facility growth
For rural manufacturers, the USDA B&I loan program remains another great tool, offering funding up to $25 million — making this a golden era for capital access if you know where to look.
SBA Still Reigns as the Best Loan Option
Even with recent changes — such as the SBA lowering SPSS scoring thresholds and reinstating collateral requirements for loans over $350,000 — the SBA remains the best financing vehicle for small business owners.
It combines:
- Low down payments (as low as 10%)
- Long repayment terms (10–25 years)
- Flexible uses for funds
- Government guarantees up to 90%
If this new proposal passes, manufacturers could see an unprecedented window of opportunity to finance expansion, buy real estate, or invest in new technology.
How to Take Advantage of SBA Loan Opportunities
If you’re ready to explore SBA financing for your manufacturing business, now’s the time to prepare. Beau Eckstein and his team specialize in SBA and USDA loan programs, helping entrepreneurs structure deals and secure the best possible terms.
👉 Visit bookwithbeau.com to schedule a discovery call and learn how to position your business for the next wave of funding opportunities.
Bonus Resource: The Biz Scaling Playbook
Looking to grow your business efficiently with virtual staffing and AI tools?
Download Beau’s free ebook — The Biz Scaling Playbook — to learn how to 10x your productivity and scale your operations without heavy overhead.
Final Thoughts
The potential increase to $10 million SBA loans for manufacturers could mark a historic turning point for American small businesses. From boosting production capacity to fortifying supply chains, this expansion empowers entrepreneurs to build, hire, and innovate right here in the U.S.
Stay tuned for updates — and if you’re ready to make your next big move, start planning your financing strategy today.
💼 Your growth starts with the right funding.