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Alford Introduces STRONG Act to Support Small Businesses with Greater Access to SBA-Backed Lending

Washington, June 26, 2025

Today, Congressman Mark Alford (MO-04), the Chairman of the House Small Business Subcommittee on Oversight, Investigations, and Regulations, introduced the Supporting Trade and Rebuilding Opportunity for National Growth (STRONG) Act.

The STRONG Act will give American small businesses greater access to financing to create jobs, support existing workers, and invest in their communities by increasing the maximum value threshold of SBA 7(a) and 504 loans.

“We’re proud to introduce the STRONG Act to ensure American small businesses not only survive but thrive,” said Congressman Alford. “After four years of being crushed by inflation, supply chain bottlenecks, and overregulation under the Biden Administration, our small businesses are on the brink. Job creators and entrepreneurs desperately need support, including greater access to SBA lending, to help them make ends meet and stay in business. This critical legislation will work in concert with the One Big, Beautiful Bill and other initiatives from the Small Business Committee to finally put Main Street before Wall Street.”

Read the text of the legislation here.

Background:

  • The STRONG Act raises the maximum value threshold of 7(a) and 504 loans from $5,000,000 to $10,000,000.
  • The upper limit for 7(a) and 504 was last updated in 2010 and has not been adjusted for inflation since then.
  • The bill also provides an increase on the total limit of 504 loans SBA is able to issue, allowing more small businesses to access long-term, fixed-rate financing for major fixed assets.

What are 7(a) and 504 loans?

  • SBA 7(a) loans offer flexible, government-backed financing up to $5 million for small businesses, which can be used for a wide range of purposes including working capital, equipment, or buying a business, with terms and rates negotiated between the borrower and lender.
  • 504 loans provide long-term, fixed-rate financing for small businesses to purchase major fixed assets like real estate or equipment, typically with a 50-40-10 structure (50% from a private lender, 40% from a Certified Development Company backed by the SBA, and 10% from the borrower).
  • The programs are subsidy free and are paid for by fees on SBA partnered lenders.

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