This study demonstrates that the Smc5/6 complex, like cohesin and condensin, is a DNA loop-extruding motor. Using single-molecule imaging, the authors show that Smc5/6 dimers reel DNA symmetrically into loops at ~1 kbp/s in an ATP-dependent manner, while monomeric Smc5/6 translocates along DNA. The Nse5/6 subunit negatively regulates loop initiation by inhibiting dimerization, revealing loop extrusion as a conserved mechanism among eukaryotic SMC complexes with implications for understanding genome organization and repair.