LIONs Act Doubles Loan Limits for Small Businesses: Up to $10 Million Now Available

The LIONs Act of 2025—which stands for Loans In Our Neighborhoods—is all about boosting the amount of money small businesses can borrow through certain government-backed loans. This bill is straightforward: it significantly raises the caps on two key Small Business Administration (SBA) loan programs.

Bigger Loans, Bigger Moves

The main move here is all about loan sizes. The bill, specifically SEC. 2, jacks up the maximum loan amount for the SBA's 7(a) loan program, going from $3,750,000 to $7,500,000. Think of the 7(a) program as the SBA's go-to for helping small businesses with everything from buying real estate to covering day-to-day expenses. Also, SEC. 3. bumps the limit for development company loans (those geared towards fixed assets like buildings and land) from $5,000,000 (and $5,500,000 for certain projects) all the way to $10,000,000. Doubling the cap could mean a lot more room to grow for businesses on the edge of bigger projects.

Real-World Ripple Effects

Imagine a local bakery that's been doing well and wants to open a second location. Before this, if their expansion costs hit, say, $4 million, they'd be over the old 7(a) limit. Now, they've got plenty of headroom. Or picture a manufacturing startup in a rural town that needs $8 million to get its main facility up and running—previously impossible under the old development company loan caps, but totally doable now. It's not just about bigger numbers; it's about opening doors that were previously closed to businesses that were ready to level up but lacked the capital.

What's the Catch?

While more money sounds great, it's worth remembering that these are still loans that need to be paid back. Bigger loans mean bigger responsibilities, and businesses will need to be extra sure they can handle the repayments. The SBA will likely keep a close eye on how these larger loans are used to make sure they're going to their intended purpose—helping small businesses thrive, not just racking up debt. Also, it remains to be seen if doubling the loan amounts will spread the SBA's resources thinner, potentially making it harder for smaller businesses that don't need as much funding to get approved.