The LIONs Act of 2025 significantly increases the maximum loan amounts available through the SBA's 7(a) loan program and development company loans.
Thom Tillis
Senator
NC
The LIONs Act of 2025 significantly boosts capital access for small businesses by doubling the maximum loan amount available through the SBA's flagship 7(a) loan program, raising the cap from $\$3.75$ million to $\$7.5$ million. Additionally, it doubles the maximum loan amount available to development companies under the Small Business Investment Act, increasing their cap from $\$5$ million to $\$10$ million. This legislation aims to provide substantially larger financing options for neighborhood economic growth.
LIONs Act Doubles Small Business Loan Caps: 7(a) Loans Hit $7.5M and Development Funding Reaches $10M
The Loans In Our Neighborhoods Act of 2025—the LIONs Act—is a straight-up capital injection for small businesses. This bill focuses entirely on raising the ceilings for two major Small Business Administration (SBA) loan programs, essentially doubling the amount of money a business can access. Specifically, it hikes the maximum limit for the flagship 7(a) loan program from $3,750,000 all the way up to $7,500,000, and it increases the cap for development company loans from $5,000,000 to $10,000,000 (SEC. 2; SEC. 3). The core purpose is simple: give growing businesses access to much bigger checks for expansion and investment.
The New Math for Small Business Owners
For most small businesses, the SBA 7(a) loan is the go-to for everything from equipment purchases to working capital. But for businesses that have hit their stride—maybe a regional manufacturer or a growing tech firm—the old $3.75 million cap could feel restrictive when trying to finance a major factory upgrade or a new headquarters building. This bill changes that. By setting the new maximum at $7.5 million, the LIONs Act gives those mid-sized small businesses the financial leverage they need to make serious, large-scale investments. Think of a construction company that needs to buy $6 million worth of specialized cranes and trucks; under the old rules, they’d be short, but now they can finance the whole package through the 7(a) program.
Doubling Down on Economic Development
The bill also targets development companies, which often help finance projects aimed at job creation and community growth. Historically, the cap for these loans was stuck around $5 million. The LIONs Act pushes that limit to a flat $10 million (SEC. 3). This is a big deal for entities working on large, fixed-asset projects. For example, a development company working to build a multi-tenant industrial park or a large mixed-use facility in a revitalizing neighborhood can now secure significantly more funding through the SBA, potentially speeding up projects that bring jobs and services to the area. This change recognizes that the cost of land, materials, and construction has soared, and the previous caps were simply too low to support meaningful development today.
What This Means for the Real World
In short, this legislation is about removing outdated financial bottlenecks. For the average person, this means more capital flowing into local economies. When a small business can afford a $7.5 million expansion, that usually translates to more hiring, better wages, or a more robust supply chain. While this expansion of loan limits is a clear benefit for growing businesses, it’s worth noting that lending standards still apply. The SBA guarantees these loans, so if more (and larger) loans go sour, the taxpayer-backed guarantee fund takes the hit. However, the bill itself is designed to increase access to capital, not loosen the requirements for getting it, making it a straightforward win for businesses ready to scale up.