{"id":611874,"date":"2026-07-30T15:35:48","date_gmt":"2026-07-30T15:35:48","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/611874\/"},"modified":"2026-07-30T15:35:48","modified_gmt":"2026-07-30T15:35:48","slug":"what-the-new-sba-loan-increase-means-for-entrepreneurs-%c2%b7-babson-thought-action","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/611874\/","title":{"rendered":"What the New SBA Loan Increase Means for Entrepreneurs \u00b7 Babson Thought & Action"},"content":{"rendered":"

A federal decision to double the lifetime limit on two key Small Business Administration (SBA) loan programs reflects just how difficult the current environment has become for America\u2019s entrepreneurs, according to Babson Finance Professor Richard Bliss<\/a>.<\/p>\n

\u201cThis is probably the toughest time I\u2019ve seen in the last 20 years,\u201d Bliss said. Rising costs, economic uncertainty, hiring challenges, and rapid technological changes have combined to create unprecedented pressure on America\u2019s small businesses.<\/p>\n

\u201cThe SBA is trying to do its best to help small businesses grow, expand, and gain access to capital,\u201d said Bliss, who is part of the Babson team responsible for the Goldman Sachs 10,000 Small Businesses program<\/a>. The $750 million initiative<\/a> provides entrepreneurs with a free business education, mentoring, networks, and access to capital. Bliss, who serves as national academic director of the program, said nearly 19,000 small business owners have graduated since its 2010 launch.<\/p>\n

The SBA Loans, Explained<\/p>\n

\"HeadshotBliss has helped craft a free Goldman Sachs 12 week course for new small business owners since 2010.<\/p>\n

Under the change, eligible business owners can now borrow up to $10 million in combined lifetime SBA financing by pairing the agency\u2019s two primary loan programs\u2014the flexible 7(a) loan program and the asset-focused 504 loan program. Previously, borrowers were effectively limited to $5 million.<\/p>\n

But Bliss cautions that the increase is more nuanced than it first appears. SBA loans are designed primarily for businesses that have exhausted more conventional financing options. Applicants must meet eligibility requirements based on business size and industry, pay higher fees than many traditional loans, and navigate a more extensive application process.<\/p>\n

The 7(a) program can be used for working capital, hiring, and other operating expenses, while 504 loans are limited to long-term assets such as owner-occupied real estate and equipment. To reach the new $10 million combined cap, borrowers must first obtain a 7(a) loan before adding a 504 loan.<\/p>\n

Challenges on Main Street<\/p>\n

Even so, Bliss says expanding access to financing could provide an important lifeline. Inflation, elevated interest rates, customer pullbacks, tariff uncertainty, hiring challenges, and pressure to invest in artificial intelligence have made running a small business more difficult. Government contractors also have faced disruption as federal agencies undergo significant changes.<\/p>\n

\u201cWhen you talk to small business owners and you drill down on things, they are feeling like they\u2019re just not getting there,\u201d Bliss said. \u201cThere\u2019s just a lot of things in the air now that make it really challenging.\u201d<\/p>\n

National surveys support Bliss\u2019s assessment. More than half of small business owners cited inflation as their biggest challenge during the first half of 2026, according to the U.S. Chamber of Commerce\u2019s Small Business Index<\/a>. The National Federation of Independent Business also found that earnings trends fell in June<\/a>, with 27% of owners citing weaker sales as the primary reason profits declined.<\/p>\n

Despite those challenges, entrepreneurs continue to display a defining characteristic: optimism. Americans filed 5.7 million applications<\/a> to start businesses last year\u2014the highest annual total since the U.S. Census Bureau began tracking the data two decades ago. Applications continued to rise during the first half of this year.<\/p>\n

A survey of 1,218 Goldman Sachs 10,000 Small Business participants conducted by Babson College and David Binder Research in February found that 80% of owners are optimistic about the current trajectory of their small business, while 76% have plans to grow their business within the next year.\u00a0<\/p>\n

\u201cTo even be a small business owner, you have to be optimistic,\u201d Bliss said. \u201cIf you assessed everything on the numbers and probability, nine out of 10 people would never embark on owning, buying, or starting a small business.\u201d<\/p>\n

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