Doubling Down on Domestic Production: SBA Loan Limit Jumps to $10 Million for Manufacturers

The U.S. House of Representatives has unanimously passed H.R. 3174, the Made in America Manufacturing Finance Act. This bipartisan legislation creates a massive new runway for growth by doubling the Small Business Administration (SBA) loan limit for small manufacturers from $5 million to $10 million.

For machine shops, fabricators, and industrial startups that rising equipment costs have squeezed, this policy shift acknowledges a critical reality: building things in America is capital-intensive, and the old limits simply no longer suffice.

The Details: What Just Changed?

The core of the bill is a straightforward but powerful expansion of credit access:

• New Cap: The maximum loan guarantee for qualified small manufacturers under the SBA 7(a) and 504 loan programs rises to $10 million.

• Target Audience: This increase is specifically earmarked for small manufacturers (generally NAICS codes 31-33), who represent 98% of all manufacturing firms in the U.S.

• Broader Initiative: The bill is part of the SBA's larger "Made in America" push, which includes the recently launched 7(a) MARC (Manufacturer's Access to Revolving Credit) program and waivers on upfront fees for manufacturers in Fiscal Year 2026.

Why Now? The Cost of Modernization

The timing of this increase is no accident. The cost of industrial machinery has risen sharply, making the previous $5 million cap a bottleneck for companies trying to scale or modernize.

Consider the current cost landscape for 2025:

• Heavy Machinery: A single new large excavator or industrial press can cost upwards of $600,000 to $1.5 million.

• Automation: Advanced CNC machines and robotic cells often require multi-million dollar investments to remain competitive globally.

• Infrastructure: Expanding a physical plant to accommodate restored production lines quickly eats through millions in real estate and construction costs.

Under the old $5 million limit, a manufacturer might have exhausted their SBA eligibility just by purchasing a facility and a few key pieces of equipment. The new $10 million ceiling allows these businesses to finance the real estate, the heavy iron, and the working capital needed to actually run the plant, all under one government-backed roof.

Strategic Insight for Owners

If you are in the manufacturing sector, this legislation signals that capital markets are effectively "opening for business" for your industry.

1. Re-evaluate Your CapEx Budget: Projects that were previously too large for SBA financing—requiring complex mezzanine debt or private equity, might now fit comfortably within a 7(a) or 504 loan structure.

2. Look at the 504 Program: The 504 loan program is particularly potent for heavy equipment and real estate. With a $10 million limit, you can lock in long-term fixed rates on massive facility expansions that were previously out of reach.

3. Check Your NAICS Code: Ensure your business is properly classified under the manufacturing codes (31-33) to take advantage of these specific loan limit increases and upcoming fee waivers.

This unanimous passage is a rare signal of agreement in Washington: if we want to "Make it in America," we have to finance it here, too.

What Happens Next

The bill now moves to the Senate. Given the unanimous House passage and bipartisan support, prospects appear favorable, though timing remains uncertain.

If enacted, the increased limit would take effect upon the President's signature. Manufacturers with projects exceeding current limits could immediately benefit, and lenders would likely see increased origination activity in the manufacturing sector.

CDCs, the non-profit organizations that administer 504 loans, would need to adjust their underwriting and portfolio management for larger transactions, but the structure of the program remains unchanged.