For businesses of all sizes, working capital is essential to meet short-term debt obligations and remain financially viable. To make this easier, the SBA has streamlined and simplified its CAPLine program, which provides working capital lines of credit to help small businesses with short-term working capital needs.
Small businesses can secure a line of credit using account receivables, inventory or purchase orders and small business owners are no longer required to pledge personal assets to secure a loan. Applicants must qualify under Standard 7(a) requirements and sell on credit and create accounts receivable.
Use of Proceeds
- Finance short term working capital/operating needs
- May refinance existing short-term revolving debt
- May not be used to pay delinquent withholding taxes or similar trust funds, for floor planning or to acquire fixed assets
- Maximum line amount $5 million
- Maximum guaranty percentage is 75% for loans of $150,000+ and 85% for loans of less than $150,000
- Maximum interest rate is the same as Standard 7(a)
- Maximum maturity is 10 years
- Guaranty Fee is the same as Standard 7(a) and fees may be paid from loan proceeds
If you think a CAPLine revolving line of credit is a good fit for your business, call Altra, your preferred SBA Lender.