SBA Working Capital Pilot Program
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.
75–85%SBA guarantee
$5 MillionMaximum
Up to 60 mo.Maturity
12 monthsOperating history
Uses of proceeds
Interest rates
| Loan amount | Maximum rate |
|---|---|
| $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
- 100% of owners and all required guarantors must be U.S. citizens or U.S. nationals with a principal residence in the U.S., its territories or possessions
The Working Capital Pilot is scheduled to run through July 31, 2027.
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
Ready to talk through your options?
Paul is NOT a loan broker but works for a financial institution that is a direct lender.