Webinar: Lines of credit available through SBA

Event description

According to the Federal Reserve Banks’ 2023 Small Business Credit Survey, a line of credit was sought by 43 percent of small businesses.

This webinar will discuss SBA line of credit options available to small businesses including:

• SBA Express lines of credit up to $500,000.
• CAPLines (up to $5 million) which is an umbrella program that helps small businesses meet their short-term and cyclical working-capital needs.

Some business lines of credit operate like a credit card, making it a flexible option for businesses.  You can withdraw funds as needed to cover short-term operating expenses such as supplies and payroll, to increase inventory or for new growth initiatives.

With lines of credit, you only pay interest on the outstanding balance.  SBA caps the maximum interest rate that SBA lenders may charge.

For other lines such as SBA's CAPLines, the line of credit will be tied to the use of the funds.  CAPLines options include:

• Contract CAPLines which is tied to the costs of one or more specific contracts.
• Seasonal CAPlines which finances the seasonal increases of accounts receivable and inventory and, if applicable, associated increased labor costs.
• Working Capital CAPLines which is tied to a company's current accounts receivable and inventory.

NOTE:  SBA is waiving all SBA fees on 7a loans up to $1 million, if the loan is approved by 9/30/2024.  The fees are waived for the life of the loan.