Small Business Administration CAPLines
The SBA CAPLines program is a loan program by the Small Business Administration meant to give small businesses access to lines of credit, both revolving and fixed to convert short term assets as well as seasonal needs. Most CAPLine loans must be fully collateralized by borrower assets. CAPLines go as high as $5 million, of which up to $3.75 million is guaranteed by the SBA. Get in touch with one of our SBA Business Development Officers today and see which CAPLine program is the best fit for you!
The SBA CAPLines program is broken down into four different loan types:
- Seasonal CAPLines – A seasonal CAPline is an SBA CAPline program aimed to help you fund cyclical increases in needs like inventory, accounts receivable, and labor costs. Seasonal CAPlines are not intended to help cash flow during the off-season of the business in question.
- Contract CAPLines – A type of SBA CAPline loan program to help you acquire a specific contract, purchase order, or subcontract by covering the costs for fulfilling a contract.
- Builder’s CAPLines – A type of SBA CAPline loan program that issues funding the construction or renovation of commercial or residential buildings meant for resale. Businesses that need to cover costs of materials, labor, or other construction expenses can secure a line of credit through a Builder’s CAPline.
- Working Capital CAPLines – Get funds to cover short term working capital.
SBA Capline Financing General Parameters
- Ideal for companies involved in business-to-business sale of products or services on terms of open credit
- Variable-rate indexed to Prime
- May include extraordinary servicing fees
- Terms up to 10 years, generally with annual financial covenants