Working Capital Pilot Program Webinar

Event description

Join us to learn more about the WCP Program! The WCP offers a newly created line of credit, made by 7(a) lenders, and backed by the SBA, designed to give greater flexibility than a traditional term loan.

The WCP represents a significant expansion of the SBA’s loan programs by adding a line of credit product with an innovative fee structure engineered to increase flexibility for small businesses and lenders, providing more options when structuring a line of credit to meet businesses’ specific needs. The WCP will support lines of credit up to $5 million and introduces a series of innovative features:

New Annual Fee Structure

• The 7(a) WCP has a fee structure modeled after SBA’s 7(a) Export Working Capital Program.

• Using an annual short-term guaranty fee, the 7(a) WCP fee structure charges a proportional amount for each year the facility is in use.

• Establishing an annual guaranty fee structure allows borrowers to customize the line to their exact needs, paying only for the time that they require.

Support for 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.

Support for 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.

A New Take on Export Finance

• The 7(a) WCP can provide working capital against domestic and international orders under a single loan facility.

• New-to-export firms will be able to use the 7(a) WCP to open international markets without having to obtain a separate line of credit.