Supporting Trade and Rebuilding Opportunity for National Growth Act
- Sponsor
- Rep. Alford, Mark [R-MO-4]
- Committees
- Small Business Committee (primary)
- Last action
- Jun 26, 2025
Bottom line
The STRONG Act aims to expand access to larger capital investments for small businesses by substantially increasing the maximum loan limits for the SBA's primary lending programs.
What it actually does
This bill, known as the STRONG Act, significantly increases the maximum loan amounts available under two key Small Business Administration (SBA) programs: the 7(a) loan program and the 504/CDC loan program. Specifically, it doubles the maximum gross loan amount for 7(a) loans from $5,000,000 to $10,000,000 and the maximum for 504/CDC loans from $5,000,000 (or $5,500,000 for certain projects) to $10,000,000.
Proponents argue
Proponents argue that increasing these loan limits is crucial for supporting the growth and expansion of small businesses, enabling them to undertake larger projects, create more jobs, and stimulate economic development. They contend that current limits may be insufficient for many growing businesses, especially those requiring significant capital for real estate, equipment, or working capital in today's economic environment.
Opponents contend
Opponents might express concerns that increasing loan limits could expose the federal government to greater financial risk through higher loan guarantees, potentially leading to increased taxpayer liability in the event of defaults. They may also argue that focusing on larger loan amounts could shift the SBA's focus away from very small businesses or startups, concentrating benefits on more established enterprises.
The bill is exceptionally short and clear, making it very accessible for any reader to understand its core provisions within minutes.
Section 2
Increase in 7(a) Loan Maximum Amount
This section amends the Small Business Act to double the maximum loan amount for the SBA's flagship 7(a) loan program. Currently, the gross loan amount cannot exceed $5,000,000, with the SBA's guaranteed portion capped at $3,750,000. This bill raises these limits to $10,000,000 for the gross loan and $7,500,000 for the guaranteed portion, allowing small businesses to secure significantly larger loans through this program.
Supporters argue
Supporters argue that this increase is essential for small businesses to finance larger projects, expand operations, and create jobs, especially as costs for real estate, equipment, and working capital have risen. They believe it will allow the 7(a) program to remain relevant for growing enterprises.
Critics contend
Critics may contend that increasing the 7(a) loan limits could lead to a higher overall risk for the federal government, as larger loans typically carry greater potential for significant losses in the event of default. They might also suggest it could divert resources or focus from smaller, more nascent businesses.
Tradeoffs
The provision balances the desire to provide substantial capital for small business growth against the increased financial exposure and potential risk to the federal government's loan guarantee portfolio.
Section 3
Increase in Development Company (504/CDC) Loan Maximum Amount
This section amends the Small Business Investment Act of 1958 to double the maximum loan amount for the 504/CDC loan program. Currently, the maximum loan amount is $5,000,000, or $5,500,000 for certain energy-related projects. This bill uniformly increases this cap to $10,000,000, allowing small businesses to finance much larger fixed assets, such as real estate and equipment, through this long-term financing program.