The SBA’s Associate Administrator for Capital Access, Steve Smits and Senior Advisor to Associate Administrator Patrick Kelley met representatives from area financial institutions for training sessions of SBA’s CAP Lines program.
This served as a great opportunity for lenders to grasp the amendments and additions made to CAPLines program. The changes have been made after conversations with lenders in all 50 states. The CAP Lines program serves as another tool to make capital available to qualifying borrowers and meet the working capital needs of small businesses.
The CAPLines program is re-engineered to address the working capital needs of small businesses. It helps to create jobs, scale up loaning and manage cash cycle. The program works for small businesses and lenders similarly.
Under the CAPLines umbrella are four distinct loan programs:
Builders Line program is designed to provide funds to small contractors and developers for purpose of construction and rehabilitation of commercial and residential property.
Contract Loan program is for financing material, labor and overhead needs for specific contracts.
Working Capital Line program is revolving line of credit to provide short term working capital.
Seasonal Line of Credit program is meant for supporting buildup of inventory, materials, labor and accounts receivable above normal usage levels.
The new CAPLines guidelines allow small businesses to borrow against purchase orders for reason of paying material, labor and overhead charges. Also, SME owners need not pledge all assets. Now, small business subcontractors can easily secure guaranteed line of credit with the SBA’s CAP Lines program.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org