SBA (Small Business Administration) CAPline Line of Credit
Government-Backed Growth Capital
CAPlines are part of the SBA 7(a) loan program and provide government-backed lines of credit designed for businesses with seasonal, contract-based, construction or general working capital needs. These loans are ideal for businesses facing cash-flow fluctuations or needing financing for specific projects.
SBA CAPline programs offer up to $5 Million to help small businesses with short-term working capital needs.
SBA CAPline Requirements
General requirements you must meet to be eligible for an SBA loan, including:
- Be a small business, as defined by the SBA
- Be a for-profit business
- Conduct business in the U.S. with a physical location on U.S. soil
- Prove that you have invested your own time and money into the business
The Four SBA CAPline Programs
These four SBA programs offer an opportunity for small to medium size and emerging business operators to unlock government-backed funding:
U.S.-based business owned 100% by U.S. citizens Minimum FICO: 620+ Time in Business (TIB): 2 years Loan Amount: Up to $5 Million Loan Terms: 12-month revolving “interest-only” LOC with a monthly borrowing base Available Capital: Up to 80% of eligible A/R and 50% on eligible inventory Renewals: Annual credit reviews
Contract CAPline
The Contract CAPline helps businesses that need working capital to fulfill specific contracts, particularly large commercial agreements or government contracts. It is ideal for manufacturers, prime contractors, subcontractors, and service providers who incur significant costs before receiving payment.
Use of Funds: Direct costs of performing contracts, including labor, materials and supplies Maximum Amount: Up to $5M per contract (can have multiple CAPlines) Repayment Terms: Paid from proceeds of the contracts being financed Collateral: Contract proceeds (assignment of contract) Structure: Can finance multiple contracts simultaneously with separate sub-limits
Seasonal CAPline
The Seasonal CAPline is designed for businesses with predictable seasonal fluctuations in revenue and working capital needs. This includes retailers, tourism businesses, ag suppliers and any business whose cash flow follows a consistent annual pattern.
Use of Funds: Inventory purchases, staffing costs and A/R financing during peak seasons Maximum Amount: Up to $5M Repayment Terms: Must demonstrate ability to repay within a 12-month period from seasonal cash flow Collateral: Secured by inventory and A/R being financed Maturity: Up to 10 years, though the LOC must cycle to zero annually
Working Capital CAPline
The Working Capital CAPline is the most flexible option, providing short-term working capital financing. It is designed for businesses that need a safety net for operational expenses that cannot be funded through normal cash flow.
Use of Funds: Short-term working capital needs such as payroll, rent, operating expenses, etc. Maximum Amount: Up to $5M Repayment Terms: Must demonstrate ability to repay within a 12-month period from cash flow Collateral: Blanket lien on business assets; specific collateral requirements vary Maturity: Up to 10 years, with annual credit reviews
Builders CAPline
The Builders CAPline serves small general contractors and builders constructing residential or commercial properties for resale. It functions similar to a traditional construction loan, but with SBA backing.
Use of Funds: Direct expenses such as labor, materials, permits, etc. Maximum Amount: Up to $5M Repayment Terms: Paid from proceeds of the sale of the property Collateral: The property under construction Structure: Draws typically tied to construction milestones
Why Work with Eagle Bend Capital Financing?
Eagle Bend Capital Financing offers the financing you need, when conventional lending sources cannot. We work with a broad network of lending partners to help businesses secure flexible working capital solutions tailored to their needs.
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If you would like to learn more about our SBA and USDA loan programs, or any of our other product solutions, contact us today.