2026 is shaping up to be a strong year for lending as the Small Business Administration (SBA) doubled the combined 7(a) and 504 loan limit, increasing the accessible capital from $5 million to $10 million in total. This policy change, which went into effect on July 4, 2026, reinforced the positive outlook that many lenders and industry stakeholders predicted back in January for the year ahead.
Alongside this policy change, younger generations are steadily contributing in this growing pursuit of SBA backing. With baby boomers entering retirement, Gen X, millennials, and even some Gen Z are seeking partial or full ownership of their businesses. As a result, succession plans are more popular than ever before.
At Merchants Bank, our team has been busy serving customers across multiple industries and backgrounds as they pursue a new path forward made possible with the help of SBA. Whether working with first-time clients, long-standing borrowers, or the next in line to take over the family business, our priority remains the same – provide high-quality, transparent guidance as an extension of your team.
Throughout 2026, Merchants Bank has collaborated with several unique and exciting small businesses across the United States to ensure their teams, products, and service lines are positioned for success. A few of our most memorable loans during this time include:
- A customer out of northeast Texas who sought SBA funding in order to purchase a custom manufacturing business following the previous owner’s retirement.
- A bird toy wholesaler and distributor, based out of western Colorado, pursued financial support to better connect customers with its fully-assembled toys and pet toy-making kits.
- A family-owned baklava and pita bakery closed on new real estate located on Chicago’s north side that allowed for the expansion of manufacturing to support their nationwide sales.
In total, Merchants Bank was able to secure $9.4 million in funds for these three businesses to support their future expansion and success.
For small businesses weighing their options or in the early stages of the borrowing experience, it is important to remember that patience and knowledge are the catalysts for success. This is where working with a trusted partner makes a clear difference. At Merchants Bank, we collaborate with borrowers to identify key risks, adjust timelines and, when needed, counsel against financial moves that might jeopardize your operations.
