There are major shifts happening in the small business lending landscape that directly impact Washington State business buyers, commercial real estate investors, and our local manufacturing sectors—from Puget Sound aerospace shops to Spokane food processors.
If you are looking to acquire a business, expand your footprint, or invest in commercial real estate in the Pacific Northwest, these two massive SBA updates could significantly boost your purchasing power this year.
1. The $10 Million Combined SBA Loan Limit (Effective July 4, 2026)
Navigating the competitive Washington real estate and business markets just got a bit easier. Starting July 4, 2026, borrowers can now stack SBA 7(a) and SBA 504 financing for a total of up to $10 million in SBA-backed loans.
Under these new federal guidelines:
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SBA 7(a) Program: Borrowers can obtain up to $5 million (typically used for business acquisition, working capital, and equipment).
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SBA 504 Program: Borrowers can stack an additional $5 million (specifically for commercial real estate or heavy machinery).
Why This Matters for the Washington Market
Commercial real estate values in hubs like Seattle, Bellevue, Tacoma, and Vancouver often push mid-market transactions past traditional SBA limits. This rule change bridges that gap perfectly.
Instead of walking away from a deal because the combined value of the business and the real estate exceeded the old limits, Washington buyers can now use a hybrid structure. You can use the 7(a) loan to buy the business operations and partner with a local Certified Development Company (CDC)—such as Evergreen Business Capital or Northwest Business Development Association—to finance the real estate via a 504 loan.
Important Clarification: You still cannot get a single $10 million SBA 7(a) loan or a single $10 million 504 loan. The $10M ceiling is strictly unlocked by combining both programs in a single transaction or relationship.
For local sellers, this is equally powerful. Stronger financing options mean a deeper pool of qualified buyers for larger, lower-middle-market Washington businesses.
2. Fee Waivers for Washington Manufacturers (Through Sept. 30, 2026)
Manufacturing is a cornerstone of Washington’s economy. To support local production, the SBA is offering a major financial incentive through the end of the federal fiscal year.
Through September 30, 2026, the SBA is completely waiving guarantee fees for eligible manufacturing-related loans up to $950,000.
Is Your Business Eligible?
To qualify for the fee waiver, your business must operate under NAICS Codes 31–33. In Washington, this covers a wide array of local industries, including:
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Aerospace and maritime parts manufacturing
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Food and beverage processing (wineries, breweries, and agricultural packing)
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Wood product and machinery manufacturing
Waiving these upfront guarantee fees can save local business owners tens of thousands of dollars in closing costs—capital that can instead be deployed directly into hiring or raw materials.
Looking Ahead: Proposed Manufacturing Hikes
There is also ongoing buzz in the Pacific Northwest business community regarding proposals to increase SBA loan limits even further, specifically for manufacturing businesses (potentially up to $6.5 million or more for energy-efficient projects). However, these changes have not been approved by Congress and are not currently active. For now, the combined $10 million strategy is your best path forward for larger deals.
The Bottom Line
These updates are an incredibly positive signal for Washington’s lower-middle market. Whether you are looking to transition a family business in Yakima, acquire a tech-adjacent firm in King County, or upgrade a machine shop in Pierce County, the lending environment just became significantly more flexible.
