The Small Business Administration issued a statement on March 10, 2025 that will "will cut $100B in regulation, expand access to capital and create dedicated infrastructure to support blue-collar boom."

Key highlights for business owners are:

  • Launch a Red Tape Hotline for small business owners and manufacturers to share feedback and submit onerous regulations for review.
  • Deploy the newly announced Office of Manufacturing and Trade to offer small manufacturers dedicated resources and training in partnership with SBA field offices across the country.
  • Reduce barriers to access for the 504 loan program, a zero-subsidy program which provides capital for real estate, construction, and equipment purchases. Zero-subsidy means the program operates without ongoing taxpayer funding and is sustained by borrower and lender fees.
  • Expand the use of the 7(a) Working Capital Pilot program, which provides financing to fund inventory purchases and export-related expenses for international markets.
  • Promote a skilled manufacturing workforce by partnering with agencies, trade schools and private sector stakeholders to create a pipeline of skilled workers to support manufacturing.
  • Support President Trump’s manufacturing agenda, including tariffs to restore fair and reciprocal trade, tax cuts on domestic production, and 100% expensing retroactive to Jan. 20, 2025, for manufacturers.

Read the full press release here:
https://www.sba.gov/article/2025/03/10/sba-announces-made-america-manufacturing-initiative

The SBA is simplifying loan applications, expanding eligibility criteria, and streamlining the loan process, particularly for debt refinancing with and without expansion, as well as focusing on small business growth and job creation.

504 Updates Resulting from the Direct Final Rule:
With this direct final rule, the SBA has amended regulations governing the 504 Loan Program for debt refinancing with expansion (for small business owners seeking to refinance their existing loans while also using loan proceeds to expand their business) and debt refinancing without expansion (for small business owners seeking to refinance their existing loans).  These changes will streamline the loan application process and expand eligibility criteria for small businesses borrowers. With few exceptions, most types of small businesses are eligible to access SBA's 504 Loan Program and may benefit from these recent program changes.

The program changes include improvements that will:

  • Streamline 504 Debt Refinancing for small business borrowers and lenders alike, to simplify program rules, provide greater flexibility, and expand access to more affordable capital.
  • Make it easier for small businesses to refinance physical property, including land, facilities, and machinery.

Example: Through this rule change, a small, rural call center would be able to better harness the value of their land, buildings, and equipment when refinancing debt. They will also be able to lower their monthly payments, including for debts incurred when originally financing these fixed assets.

Learn more about the 504 updates from the SBA here:
https://www.sba.gov/article/2024/09/30/biden-harris-administration-finalizes-rule-lower-costs-small-businesses#:~:text=The%20504%20debt%20refinance%20direct,land%2C%20facilities%2C%20and%20machinery

The SBA expanded its 7(a) Working Capital Pilot (WCP) program to offer flexible, line-of-credit financing for small businesses, supporting both domestic and international transactions with a fee structure based on time of use. 

SBA's 7(a) WCP is a comprehensive line of credit program that supports asset-based and transaction-based financing, helping manufacturers manage their working capital needs and take on new contracts. The 7(a) WCP has been engineered to:

  • Enhance liquidity through an Asset-Based WCP loan which allows manufacturers to draw working capital against their inventory and accounts receivable
  • Finance new projects under a Transaction-Based WCP that can support up to 100% of related expenses
  • Provide financing for both domestic and export orders under a single line of credit
  • Offer one-on-one counseling with SBA's working capital experts to help customize a WCP loan to your specific needs

7(a) Working Capital Pilot loans have a maximum loan amount of $5 million.

Learn more about the 7(a) Working Capital Pilot (WCP) program here:
https://www.sba.gov/priorities/american-manufacturers/increasing-access-capital#:~:text=7(a)%20Working%20Capital%20Pilot,loan%20to%20your%20specific%20needs