The Small Business Governance (SBA) is potentially on the cusp of significant changes to its loan guarantee programs. H.R. 3174, currently under consideration, proposes to substantially increase the maximum loan amounts guaranteed by the agency, offering a potential boost to small manufacturers and businesses across the nation.

Key provisions of H.R. 3174

Currently, the SBA offers loan guarantees to small manufacturers for the purchase or enhancement of fixed assets – including land, buildings, and machinery – up to a limit of $5.5 million. The 7(a) loan guarantee program, a vital source of general business credit for small businesses facing difficulty accessing traditional financing, is capped at $5 million.

H.R. 3174 aims to double these limits, raising the maximum loan guarantee for small manufacturers under both programs to $10 million. This increase is designed to empower businesses to invest in growth and expansion.

Congressional Budget Office Assessment

The Congressional Budget Office (CBO) has analyzed the potential budgetary impact of H.R. 3174.Based on data provided by the SBA, the CBO estimates that any resulting changes in the costs associated with these loan guarantees would be insignificant, as the guarantees are subject to congressional appropriation.

This assessment mirrors a previous CBO cost estimate issued on September 24,2025,for S. 1555, the Made in America Manufacturing Finance Act of 2025.S. 1555 also proposed increasing loan limits for the SBA loan guarantee program and included additional reporting requirements for the agency. The CBO determined that the budgetary effects of the loan limit increases would be consistent between both bills.

CBO contact Details

For further details regarding the CBO’s analysis, Aurora Swanson was the staff contact. The estimate underwent review by H. Samuel Papenfuss,Deputy Director of Budget Analysis.

Phillip L. Swagel

Director,Congressional Budget Office

Loan Guarantee Limit Comparison