Supporting Trade and Rebuilding Opportunity for National Growth Act

Key Points

• The STRONG Act doubles the maximum loan amount for SBA 7(a) loans, raising the cap from $3.75 million (gross $5 million) to $7.5 million (gross $10 million). These loans help small businesses cover operating costs like inventory, payroll, and working capital.
• The bill also doubles the maximum loan amount for SBA 504 Development Company loans from $5 million (or $5.5 million in some cases) to $10 million. These loans are typically used for major fixed-asset purchases like real estate, buildings, and heavy equipment.
• Introduced by Rep. Alford with bipartisan co-sponsorship from Rep. Wied, the bill was referred to the House Committee on Small Business. It is still in the early stages of the legislative process.
• By doubling loan caps, the bill aims to help growing small businesses that need more capital than current limits allow, especially as rising costs for real estate and equipment have made existing limits less adequate for expansion needs.