There’s an important shift happening in the SBA lending world that could create significant opportunities for business owners, investors and owner-users throughout Southern California.
One of the most impactful changes is the new ability to “couple” SBA 7(a) and SBA 504 financing together.
As of May 2026, the SBA has officially increased the combined SBA 7(a) and SBA 504 lending limit to $10 million, effectively doubling previous cumulative borrowing capacity. According to the latest lending update, the current SBA 504 rate is approximately 5.95%, while the 10-Year Treasury Constant Maturity Rate is 4.59%.
Here’s why that matters:
Previously, many borrowers would max out their SBA eligibility after a single large transaction.
Under the new structure, qualified borrowers may now access:
• Up to $5 million through the SBA 7(a) program
• PLUS up to $5 million through the SBA 504 program
• For a combined total of $10 million in SBA-backed financing
The SBA is also decoupling certain 7(a) balances from the 504 program, allowing businesses to leverage both loan products more strategically for expansion, equipment purchases, real estate acquisitions and working capital.
This creates substantial new opportunities for:
✔ Manufacturers
✔ Medical & life science companies
✔ Aerospace & defense contractors
✔ Logistics and distribution companies
✔ Multi-location operators
✔ Commercial real estate investors
For growing businesses, this may now make purchasing a facility far more achievable than many previously believed possible.
For commercial property owners, this potentially expands the buyer pool significantly, especially for owner-user industrial and office properties.
At Johnston Pacific Commercial Real Estate, we are already seeing increased activity from companies evaluating expansion plans, acquisitions and long-term ownership opportunities throughout South Orange County’s industrial market.
With inventory remaining tight and financing capacity increasing, we believe this could become a major catalyst for owner-user demand in the months ahead.
If you would like to discuss:
• Owner-user acquisition opportunities
• Current market values
• Off-market industrial properties
• Expansion strategies
• Sale-leaseback structures
• Investment acquisitions
Access to capital creates opportunity, and this latest SBA change could be one of the most impactful financing shifts commercial real estate has seen in years.
Johnston Pacific Commercial Real Estate, Inc.
Experts at finding your perfect commercial property investment.
