What The $10 Million SBA Loan Cap Could Mean For Small Manufacturers

A major increase in SBA lending limits could reshape America’s manufacturing landscape — but only if small businesses get the ecosystem support they need to expand production, modernize equipment, and compete in global supply chains.

The House’s passage of the Made in America Finance Act marks one of the most significant shifts in small-business financing in more than a decade. The bill, which passed the House and now awaits Senate action, would raise SBA lending limits for small manufacturers. By raising SBA 7(a) and 504 loan limits to $10 million, lawmakers acknowledged what manufacturers have long understood: the cost of competing in modern production has far outpaced the capital traditionally available to smaller firms. With nearly 75% of U.S. manufacturers employing fewer than 20 workers, the change could unlock growth for the majority of America’s industrial base.

Manufacturing has always been capital-intensive. Replacing equipment, expanding plant floors, or adopting automation technologies often requires multi-million-dollar investments. Aligning federal lending with real production costs is essential, especially as the country aims to rebuild domestic supply chains and reduce reliance on foreign production. But increased financing alone will not overcome the structural challenges that small manufacturers face.

Three key needs stand out—each underscored by data that highlights the urgency of this moment.

1. Modernized Production Capacity

Much of America’s industrial equipment is past its prime. The average machine on a U.S. shop floor is more than 25 years old, according to the National Association of Manufacturers. Aging machinery limits efficiency and raises maintenance costs. Larger loans can help firms replace outdated equipment, but modernization also requires engineering expertise and operational support to ensure these investments translate into productivity gains.

2. Workforce Pipelines Aligned With Today’s Industry

The sector faces over 600,000 unfilled manufacturing jobs, according to the latest BLS Job Openings and Labor Turnover Survey. That gap could widen to 2.1 million by 2030, based on projections from the Manufacturing Institute and Deloitte. Smaller firms often struggle the most because they compete with larger employers for workers trained in automation, advanced machining, and digital production. Workforce systems need to evolve to meet this demand, particularly in regions experiencing new manufacturing investment.

3. Greater Access To Stable Markets And Supply Chains

Capital enables growth only when manufacturers can secure long-term contracts to sustain it. Yet nearly 60% of small manufacturers report difficulty breaking into large corporate or federal supplier networks, according to a Deloitte manufacturing supplier diversity analysis. Limited procurement access makes it harder to predict demand and justify expansions, even when financing is available.

These challenges are compounded by gaps in the broader manufacturing support infrastructure. Many regional manufacturing extension partnerships and technical-assistance organizations have been chronically underfunded. Yet these institutions play a critical role in helping smaller firms adopt new technologies, refine production processes, and identify new market opportunities. Strengthening this ecosystem would significantly amplify the impact of expanded SBA lending authority.

The stakes are national. Small manufacturers employ more than 5 million Americans, according to the U.S. Census Annual Survey of Manufactures. They anchor regional economies and contribute to supply chain resilience. Their ability to scale will shape America’s competitiveness in emerging sectors such as clean energy, advanced materials, and next-generation production technologies. The new lending limits offer a rare opening to expand the country’s industrial capacity from the ground up—if the right supports are in place.

Realizing that potential will require policymakers and industry leaders to move in step with the financing shift. Rebuilding regional technical-assistance networks, expanding opportunities for supplier inclusion, and modernizing workforce pipelines are essential to ensuring that capital translates into measurable production gains. Each piece is necessary for small manufacturers to grow, modernize, and compete.

The $10 million shift is a meaningful step forward. But capital becomes catalytic only when paired with the capacity, workforce, and market access needed to deploy it effectively. If the United States wants a stronger, more competitive manufacturing base, it must recognize small manufacturers as a strategic national asset—and support them accordingly. Their success will determine whether this moment becomes a turning point for American production.