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Contracting and Need a Line of Credit? SBA Has a Loan Program for You.

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Contracting and Need a Line of Credit? SBA Has a Loan Program for You.

By Jeanne Hulit, Former Acting SBA Administrator
Published: April 26, 2012 Updated: April 27, 2012

In today’s market, even though lending is on the rise, improvement is needed to ensure that our economy is sound and built to last. The SBA, through our loan guaranty programs, works daily to fill the gaps so more Americans can start, and grow small businesses.

The CAPLines loan program is one instrument in the SBA tool kit that businesses are using to get the working capital they need.  Designed to help small businesses meet their short-term and long term working capital needs, the program has been reworked over the last year to increase access for potential borrowers.  From contracting to purchase orders, CAPLines provides financing through a revolving line of credit. This helps more small businesses get the cash-on-hand to hire more workers or buy the materials they need to help fill an order.

And our efforts to expand the pool of potential borrowers are paying off. To date, we have doubled the amount of loans to borrowers over the last year and CAPLines has seen a 228% increase in approvals and a 127% increase in dollars over the same time period. And we are working with more local banks in your neighborhoods-roughly 87% of approvals and 85% of dollars have gone through community banks (i.e. banks with under $10B in assets).

The SBA and the Obama Administration are committed to helping more small businesses. Small businesses continue to drive the recovery, and they are essential to creating an economy built to last. From the 17 tax cuts for small businesses to programs like CAPLines, more small businesses have the tools they need to grow and create jobs.

Want to learn more? Check out our CAPLine factsheet. Need access? Take the first step towards expanding your business- visit sba.gov to find your SBA district office and apply today! 

About the Author:

Jeanne Hulit

Former Acting SBA Administrator

Jeanne Hulit is the Acting Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.

Comments:

I really don't know what me and hundreds of other small business owners would do without these loans. I run offline and online business and to get started there was no way I could do it on my own.
With more easily accessible credit, the loans will enable small businesses to do their day to day operations and make investments to where they feel will help them grow their business. As such, they would not be as restricted as before due to financial limits.
Small business loans are necessary to a healthy economy.

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