icon CAPLines

CAPLines Program - SBA Line of Credit

quick look blue

The CAPLines working line of credit program is a range of financial products designed to assist small businesses with their short-term and cyclical capital needs. In most cases, these products are only available to companies which already have a traditional SBA 7(a) or CDC/SBA 504 loan. In rare cases, qualified borrowers or well-connected businesses with the potential to bring other borrowers to a bank, may find a lender willing to provide a stand-alone CAPLines LOC.

Major advantages to businesses of the CAPLines program is that interest is only paid on the amount actually borrowed, and that further cash is always quickly and easily available up to the maximum loan amount.

examples blue
  • Converting invoices to cash
  • Covering seasonal costs
  • Covering costs of materials and labor for a building project
qualify blue
  • 660+ Credit score
  • Business must pledge accounts receivable, inventory, purchase orders, or contracts as collateral for loan
  • For the seasonal line of credit program, the business must be at least 1 year old and show a seasonal pattern to revenue
quick facts blue
facts caplines


  • Set payments at regular intervals
  • Can be used for a wide variety of purposes
  • Relatively low interest rate
  • Long repayment schedule
  • Lengthy application process
  • May carry early payment penalty
  • Variable interest rates may increase

Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.

Ready to find the funding your business needs?
Fill in our simple and quick Loan Application Starter

Already filled in our Starter Application?
Login Here to access our Loan Application


The following products have a limit up to $5 million:

Seasonal Line of Credit. Seasonal increases in accounts receivable, inventory needs, or related increased labor costs. Businesses which operate seasonally, or which have significant changes in activity between season, may encounter cash flow problems coming in to a busy season. This product allows those businesses to expand as rapidly as possible by avoiding cash shortages. Your business must have been in operation for at least one year.

Contract Line of Credit. Materials and labor associated with assignable contracts. If your company has secured an assignable contract but doesn’t have the resources available to meet the contract, and if the contract meets the SBA guidelines of retaining or creating jobs, the Contract Line of Credit may be the answer.

Builders Line of Credit. Materials, equipment, labor, permits and even land purchases (land purchase expenses may not exceed 20% of the total LOC limit). Similar to the Contract Line of Credit, the Builders Line has a great deal of flexibility. This LOC may be used for a wide range of costs associated with building or renovating a residential or commercial property, where the intent is to sell that property to an as yet unknown party upon completion. Be aware, however, that this LOC is the most heavily regulated of the CAPLines programs and funds disbursements may be dependent upon project milestones.

Standard Asset-Based Line of Credit. Converts short-term assets (such as invoices) in to cash. Very similar to Invoice Financing, the Standard Asset-Based LOC may be a better solution for larger companies, as the cost of borrowing may be substantially lower than costs for Invoice Financing. Note this LOC may not be used for delinquent taxes, floorplanning or the purchase of fixed assets.


The following product has a limit up to $200,000:

Small Asset-Based Line of Credit. Allows small businesses to convert short-term assets (such as invoices) into cash. Has looser servicing requirements than the Standard Asset-Based Line but the same benefits and limitations.