What is the SBA Working Capital Pilot Program?
The 7(a) Loan Program is SBA’s primary program for helping small businesses with financing guaranteed for a variety of general business purposes.
USES OF PROCEEDS·
Working capital
AMOUNTS·
Minimum- $250,000
Maximum – $5 Million
MATURITY·
Up to 60 Months
Interest Rates
$50,000 or less: cannot exceed base rate + 6.5%
$50,001 – $250,000: cannot exceed base rate + 6.0%
$250,001 – $350,000: cannot exceed base rate + 4.5%
$350,001 and greater: cannot exceed base rate + 3.0%
Eligibility
- Have a history of 12 full months of operations prior to filing an application
- If supporting an acquisition – the acquiring borrower must have a history of 12 full months of operations prior to filing an application
- Can produce timely and accurate financial statements, accounts receivable and accounts payable agings, and inventory reports
- The lender must obtain updated financial statements on the borrower annually and perform a full credit analysis as part of any renewal
Asset Based Lending
- The 7(a) WCP is positioned to help small businesses access the working capital they need to support and grow their business
- Using a 7(a) WCP, small businesses can efficiently borrow against their accounts receivable and inventory
- The 7(a) WCP will also help transition borrowers from SBA Express loans into a larger working capital facility to support their growth
Transaction Based Lending
- The 7(a) WCP can support project financing, allowing a borrower to access the working capital at an earlier point than they would under a traditional line of credit
- Through this unique financing method, the 7(a) WCP can enable a borrower to access funding earlier in their sales cycle
- With the support of a Transaction Based 7(a) WCP, small businesses can take on transformational opportunities with the confidence they can cover all related costs
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