💰SBA 7(a) Working Capital

Keep Your Business Running and Growing

Payroll gaps, inventory needs, seasonal slowdowns — every business hits cash flow crunches. SBA 7(a) working capital loans give you the runway to bridge the gap, seize opportunities, and fund growth without sacrificing operations.

Term Loan or Line of Credit?

Two structures solve different cash flow problems. Here's how to choose.

📋

SBA 7(a) Term Loan

Lump sum disbursed upfront, repaid in fixed monthly payments over the loan term.

Best For

  • One-time large inventory purchase
  • Hiring and onboarding campaigns
  • Marketing/advertising spend
  • Bridge to new contract revenue
  • Defined growth initiative
Max Amount$5,000,000
TermUp to 10 years
RatePrime + 2.25–2.75%
🔄

SBA CAPLine (LOC)

Revolving line of credit — draw, repay, and draw again up to your credit limit.

Best For

  • Seasonal revenue fluctuations
  • Contractor and subcontractor costs
  • Ongoing inventory management
  • Accounts receivable gaps
  • Cyclical business cash flow
Max Amount$5,000,000
TermUp to 10 years (revolving)
RatePrime + 2.25–2.75%

Common Use Cases

How growing businesses use SBA working capital loans.

📦

Inventory Build-up

Stock up before peak season or fulfill a major new contract without straining cash flow.

👥

Payroll & Staffing

Fund new hires, payroll during slow periods, or expansion into new markets.

📣

Marketing Campaigns

Launch advertising campaigns, digital marketing, or trade show presence.

⏱️

AR Gaps

Bridge the gap between delivering services and receiving payment from customers (Net 30/60/90).

🌱

New Location Prep

Pre-open costs, staff training, and initial stocking for an expansion location.

🔌

Tech Upgrades

Software, subscriptions, and operational systems that are too short-lived for equipment financing.

🌊

Seasonal Bridge

Carry operations through your slow season so you arrive at peak season fully staffed and stocked.

🤝

Contract Mobilization

Fund startup costs on a new government or commercial contract before invoicing begins.

Typical Loan Terms

Standard 7(a) — Max Amount$5,000,000
SBA Express — Max Amount$500,000
Standard 7(a) — Max Term10 years
Standard 7(a) — RatePrime + 2.25%–2.75% (~8.75%)
SBA Express — RatePrime + 4.5%–6.5% (~11–13%)
CAPLine Revolving TermUp to 10 years (annual review)
Down Payment / EquityNo down payment required (cash flow based)
CollateralBusiness assets required when available
Personal GuaranteeRequired from all 20%+ owners
SBA Express Approval36 hours (expedited SBA review)

Frequently Asked Questions

Common questions about SBA working capital financing.

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