Can a Borrower Have Multiple SBA 7(a) & 504 Loans and Exceed the $5 Million SBA Guarantee Limit? Yes! And here’s how to make it happen.

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Knowledge is what gets you paid. Business banking success is part science, part art. The science is knowing the tools. The art is using them to craft a pitch that hooks business owners. Once hooked, they’ll give you a shot to win their business. Mastering SBA lending products is exactly the kind of knowledge that makes you stand out—and close more deals.

SBA loans are popular for a reason. The SBA guarantee reduces risk, helping lenders approve more credit and fueling business growth. But what if a borrower already has SBA debt? Can you stack more SBA loans on top? Yes—but you’ll need to clear a few hurdles: collateral, debt service coverage, and total SBA exposure.

First, multiple SBA 7(a) loans:
Most SBA 7(a) lenders file a blanket UCC lien—pledging all business assets as collateral. So how do you fund new needs? If the new loan has its own collateral—like equipment or the assets of a business acquisition—you’re good. Make sure cash flow supports the new debt. As long as the combined SBA-guaranteed debt stays under $5 million, you’re in business.

Second, SBA 7(a) loans for borrowers with existing SBA 504 loans:
You can absolutely combine these programs. I’ve helped clients acquire a competitor with a 7(a) loan while using a 504 loan to buy the real estate. If an SBA 7(a) borrower wants to purchase an owner-occupied property, you can use a 504 loan or another 7(a), provided total SBA debt remains under $5 million and the borrower can cover the payments.

Third, going beyond the $5 million cap:
Yes—it’s possible to exceed the limit. This is where experience matters. A team that knows the SBA SOP inside out can structure deals other bankers walk away from. Reach out to me at [email protected]  if you need more information on any of the points discussed below. Here are a few strategies:

• CPACE Financing: For construction or rehab, CPACE can bring in additional dollars when SBA limits are maxed.
• Green Energy & Project Provision: Qualify and unlock up to $5.5 million in SBA 504 financing—per project.
• Ownership Limitation: If your borrower owns less than 20% of another business, they can access fresh SBA 504 loans without counting toward their limit.
• Manufacturers: Businesses under NAICS codes 31–33 can borrow up to $5.5 million—per project.

Make it your mission to master business lending solutions. Too many bankers leave money on the table because they don’t know how to structure the right deal. Don’t be that banker. Be the expert your clients trust to get it done.

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