SBA CAPLines Program
Small Business Administration
Up to $5,000,000
SBA revolving credit for seasonal and cyclical cash needs
SBA-guaranteed revolving and non-revolving lines of credit under the 7(a) umbrella, designed for small businesses with cyclical or short-term working capital needs. CAPLines fills the gap between the 7(a) term loan (for long-term assets) and commercial lines of credit (which small businesses often can't access without the SBA guarantee). Four distinct line types serve different business models: Seasonal (inventory build-up), Contract (fulfill specific contracts), Builders (construction costs), and Working Capital (asset-backed revolving). Up to $5M, SBA guarantees 75–85%.
- Funding type
- Loan
- Level
- Federal
- Amount range
- $500 – $5,000,000
- Realistic amount
- Most CAPLines run $100,000–$1,500,000 and are sized to the borrower's working capital cycle. Seasonal CAPLines are commo…
- Deadline
- Rolling — no application deadlines. Apply any time through an SBA-approved lender offering CAPLines.
- Status
- active
- States
- Nationwide
- Payment model
- advance
Who qualifies
- U.S.-based for-profit small business meeting SBA size standards (NAICS-based)
- Meets standard 7(a) eligibility requirements: cannot obtain comparable credit at reasonable terms without SBA guarantee; no federal delinquency; owners of 20%+ provide personal guarantee
- SEASONAL CAPLine: Must demonstrate 12-month history of seasonal sales fluctuation; line must be fully paid off at end of each season (typically annual)
- CONTRACT CAPLine: Must have assignable contracts or purchase orders from creditworthy buyers; advances tied to specific contract receivables
- BUILDERS CAPLine: Licensed residential or commercial general contractor with projects under construction; for construction/renovation costs only, not land acquisition
- WORKING CAPITAL CAPLine: Eligible AR (typically <90 days, non-government) and/or eligible inventory; ongoing borrowing base certificate required; 5-year maximum maturity
Hard requirements
- Requires federal certification:
What it covers
Eligible expenses
- SEASONAL: Pre-season inventory purchases, additional seasonal staffing costs, seasonal marketing expenses
- CONTRACT: Direct costs (labor, materials, subcontractors) to fulfill a specific named contract or purchase order
- BUILDERS: Hard construction costs — materials, subcontractor payments, general conditions; draws verified against construction progress
- WORKING CAPITAL: Accounts receivable financing (advance against eligible AR <90 days); inventory financing (advance against eligible raw materials and finished goods)
- All tracks: Short-term operating expenses tied to the specific CAPLine purpose
Ineligible expenses
- Real estate acquisition or long-term capital improvements (use 7(a) term loan or SBA 504)
- Equipment purchases (use 7(a) term loan)
- Repaying existing long-term debt
- Financing non-U.S. business activities
- For Working Capital CAPLine: government receivables older than 90 days; foreign receivables without credit insurance
- General overhead not tied to the specific CAPLine's eligible asset pool
How to apply
-
1
Select the right CAPLine track for your business model
The four tracks have different collateral structures and advance rates. Seasonal: advances against pre-season inventory build; Contract: advances against specific receivables from named contracts; Builders: advances against construction draws; Working Capital: revolving advances against all eligible AR and inventory. Choose based on your cash cycle before approaching lenders — not all lenders offer all four tracks.
~2 hrs
-
2
Find a CAPLine-experienced lender
Use SBA Lender Match (lendermatch.sba.gov) or contact your SBA district office. CAPLines require more specialized underwriting than standard 7(a) term loans — many community banks offer Seasonal and Working Capital CAPLines; Contract and Builders CAPLines are more specialized. Government contractors should also look at SBA-designated lenders familiar with government contract financing.
~3 hrs
-
3
Prepare application and collateral documentation
Standard 7(a) package plus track-specific materials: Seasonal — 3 years of monthly sales/receipts showing seasonal pattern; Contract — copies of contracts, assignment agreements, buyer creditworthiness; Builders — project plans, cost schedules, contractor license, construction contracts; Working Capital — current AR aging, inventory schedule, borrowing base certificate template. All tracks: 3 years business tax returns, personal returns for 20%+ owners, current financials.
~20 hrs
-
4
SBA reviews and issues guarantee
Lender submits to SBA for guarantee authorization (non-PLP) or approves in-house (PLP lender). SBA verifies eligibility and track-specific requirements. 5–15 business days for non-PLP. Facility is documented as a revolving credit agreement (most tracks) or non-revolving line (Builders).
~2 hrs
-
5
Draw against the line and submit periodic borrowing base certificates
For Working Capital and Contract CAPLines, submit a borrowing base certificate each time you draw — this calculates your available credit based on current eligible AR/inventory. Seasonal CAPLines have a seasonal advance period followed by a zero-balance clean-up period. Builders CAPLines advance against construction draws verified by lender inspection.
~4 hrs
Government contractors: Contract CAPLine is one of the few SBA products that lets you assign contract payments directly to the lender as collateral — this 'prime contract assignment' is powerful for SBIR Phase II or DoD contracts that don't allow recourse to your other assets.
Deadline & timing
No program-level deadlines. CAPLines are lender-originated; annual renewals are common. The four CAPLine tracks have different underwriting requirements — confirm which track your lender offers and which fits your business model before applying.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.