NEWS | Small Business Regulatory Update from NSBA

NSBA continues to support productive, commonsense small-business regulatory policies from Washington.

JULY 08, 2026 | Federal agencies continue to implement policy changes that will shape how small businesses access government funding and financing. Recently, officials have considered a proposed overhaul of federal grant administration from the Office of Management and Budget (OMB), as well as new Small Business Administration (SBA) lending rules that expand access to capital for growing small businesses.

NSBA is closely monitoring both developments and will continue advocating for policies that promote certainty, transparency, and opportunity for the small-business community:

OMB Grant Rule

Earlier this year, the Office of Management and Budget (OMB) published a proposed rule that would significantly change how federal grants and cooperative agreements are made and terminated. Among other provisions, the rule would require senior political appointees to review discretionary grant awards before they are finalized. Additionally, it would introduce contract-style "convenience terminations," giving agencies authority to suspend or cancel active grants, including multi-year awards, at any point a project is judged no longer aligned with current priorities. 

While NSBA supports OMB’s intent to improve transparency and alignment between federal spending and current law, we hope to ensure the policy does not weaken confidence in multi-year discretionary funding commitments, creating complications for small firms. NSBA will be filing comments on the proposed rule, with the intent to preserve predictability for small firms that plan around multi-year awards, and to ensure any expanded termination authority comes with basic notice and process protections.

Comments are due July 13, 2026. OMB has stated it intends to issue a final rule by October. Individualized comments can be submitted at regulations.gov.

SBA Loan Limit Changes

Effective July 4, 2026, SBA  eligible borrowers can combine 7(a) and 504 loans for up to $10 million in SBA-backed financing, double the previous cumulative limit of $5 million. Under the new policy, a borrower who secures a 7(a) loan first may access up to $5 million through 7(a) and up to another $5 million through 504, for a combined total of $10 million. 

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