For small businesses, navigating federal loan limits has long felt like trying to fit a square peg into a round hole.
A small business expanding its footprint often needs real estate financing alongside substantial working capital, but it often hits the federal ceiling too quickly.
A recent change by the federal Small Business Administration (SBA) will make this frustration a thing of the past for many North Dakota entrepreneurs.
Big Win for Economic Growth
The SBA recently announced a significant policy shift that effectively doubles the combined borrowing capacity of its two flagship programs: the 7(a) loan and the 504 loan.
Effective July 4, 2026, outstanding 7(a) loans will no longer count against a borrower’s 504 availability limits.
For the Lewis & Clark Development Group’s small business lending team, this is a massive win for local economic growth.
“Previously, businesses maxed out 7(a) loans, limiting 504 real estate options due to shared caps. Decoupling these limits allows small businesses more room to expand and grow,” says Derrick Becker, LCD Group Commercial Lending Director.
Decoupling the Limits
Under the new policy, qualified borrowers can access up to $5 million through the 7(a) program for operational costs or equipment, and still access up to $5 million through the 504 program for fixed assets like land and facility construction.
In another big change, the SBA clarified that eligible borrowers can now process multiple 504 projects simultaneously.
Becker notes that these benefits North Dakota’s high-cost industries — construction, energy, logistics, and ag-processing.
“If you felt constrained by the old SBA caps, the door is now wide open,” adds Becker. “Let’s review your project and see what we can build.”
To learn more about the SBA 504 and all LCD Group business lending programs, contact Becker at (701) 667-7622 or derrick@lcdgroup.org.
