H.R. 3174 would increase the loan limits for two loan guarantee programs administered by the Small Business Administration (SBA). Under current law, the limit for loan guarantees to small manufacturers to purchase or improve fixed assets such as land, buildings, or machinery is $5.5 million. The current limit for 7(a) loan guarantees, which provide general business credit assistance to support small businesses that cannot otherwise access credit, is $5 million. The bill would increase the maximum loan guarantee for small manufacturers under both programs to $10 million.
Using information from the SBA, CBO estimates that any change in the costs of the loan guarantees, which are subject to appropriation, would be insignificant.
On September 24, 2025, CBO transmitted a cost estimate for S. 1555, Made in America Manufacturing Finance Act of 2025, as reported by the Senate Committee on Small Business and Entrepreneurship on July 29, 2025. S. 1555 also would increase loan limits for the loan guarantee program and would add additional reporting requirements for the SBA. CBO’s estimates of the budgetary effects of the increase in loan limits are the same for both bills.
The CBO staff contact for this estimate is Aurora Swanson. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
