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SBA Express and CapLines

There are two main types of SBA loans you can typically secure. One type is called CAPLines.
There are actually 5 types of CAPLines that can work for your business.

You can also secure a lower loan amount faster using the SBA Express program. Most of these programs offer BOTH loans and revolving lines of credit. From SBA… “CAPLines is the umbrella program under which SBA helps business owners meet short-term and cyclical working capital needs”. Loan amounts are available up to $5 million. Loan qualification requirements are the same as with other SBA programs.

Seasonal Line – Advances against anticipated inventory and accounts receivables. Designed to help seasonal businesses. Loan or revolving are available.

Contract Line– Finances the direct labor and material cost associated with performing assignable contracts. Loan or revolving are available.

Builders Line – Designed for general contractors or builders constructing or renovating commercial or residential buildings. Used to finance direct labor-and material costs, where the building project serves as the collateral. Loan or revolving are available.

Standard Asset-Based Line – For businesses unable to meet credit standards associated with long-term credit. Financing for cyclical growth, recurring and/or short-term needs. Repayment comes from converting short-term assets into cash. Businesses continually draw from the LOC, based on existing assets, and repay as their cash cycle dictates. This line generally is used by businesses that provide credit to other businesses.

Small Asset-Based Line- Asset -based revolving line of credit of up to $200,000. This line has It operates like a standard asset-based line except that some of the stricter servicing requirements are waived, providing the business can consistently show repayment ability from cash flow for the full amount.

The SBA Express program offers access to a credit line for well-qualified borrowers.

You can get approved for up to $350,000. Interest rates vary, with SBA allowing banks to charge as much as 6.5% over their base rate. Loans over $25,000 will require collateral.