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SBA Working Capital Revolving Lines of Credit Helping Small Businesses

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SBA Working Capital Revolving Lines of Credit Helping Small Businesses

By ngoriel, SBA Official
Published: November 6, 2013

Note: This blog is by Ann Marie Mehlum, Associate Administrator, SBA Office of Capital Access

For businesses both large and small, access to short and long-term working capital can often be a challenge.  - Whether it’s a contractor juggling a few jobs at one time, or a store on Main Street looking to bring in this season’s inventory, finding the capital to meet their business needs can often be challenging.

To help make this task easier, the U.S. Small Business Administration (SBA) has streamlined and simplified our CAPLine program, which provides working capital lines of credit designed to help small businesses with their short-term working capital needs, and it’s catching on.

In early 2011, SBA made major enhancements to the CAPLine program to make sure that small businesses had easier access to the working capital that would allow them to keep growing and creating jobs. By mid-2013 the results were clear—the CAPLine program saw a 228 percent increase in the total number of loans approved and a 127 percent increase in the total dollar amount.   

Let’s look a little more closely at these enhancements:

  • It is now  possible for small businesses to secure a line of credit using their account receivables, inventory and purchase orders;

  • Lines of credit are available to small business subcontractors so that they can finance their work with prime contractors; and

  • Small businesses are no longer required to pledge their personal assets to secure a loan.

In FY 2013, the CAPLine program approved 682 loans for more than $500 million. In FY 2012 and FY 2013, the two full fiscal years since the program was re-designed, SBA approved more than 1,200 loans—a significant increase over the 1,300 loans issued over the prior 15 years (FY 1997 – FY 2011.)

Small businesses are the engine of our economy, creating two out of every three net new jobs in the United States.  At SBA, we’re committed to making sure that small businesses have the resources and tools they need to harness their entrepreneurial spirit, grow, and thrive—and the CAPLine program is a critical part of our effort.

If you think a CAPLine revolving line of credit might be a good fit for your business’s needs, contact an SBA office near you or visit



About the Author:

Natale Goriel

SBA Official

Hi, my name is Natale and I'm serving as a Moderator for the SBA Community. Our goal is to continually improve this site to meet your needs, so we appreciate your feedback and participation.


The 2-year growth in the program is an accomplishment, but it would be useful if the improvements were detailed a little further here. How much can A/R be leveraged? How are the typical rates versus commercial options? And while it is good to know how many applicants were approved, how many businesses applied?
CAPLine has truly withstood the test of time. A 228 percent increase in the total number of loans in just 2 years is fascinating.
am very interested in this line of credit, it is difficult to get funding to start a business, in my case a long seek capital to expand my business from security cameras, but these days I hit a lot of doors, I will find out on this proposal. thank you very much
We provide lines of credit. Check us out. Approved by bbb. Any question. Let me know. Startups ok.
Hello Natale, Very good information, but it's sad that a small start up businesses who really needs it can't qualify since they don't have substantial inventory or receivables yet. Although, this will at least help established small businesses survive an unforeseen disaster. In any case good info, Thank you, Jeff Wilson, Phoenix, AZ.
SBA delivers working capital outlines of credit history developed to assist small enterprises making use of their simple-word functioning capital needs.Little organizations will be the motor of the economic system, building two away from each and every three world wide web new jobs within the United states of america.
CAPLine program is really a good initiative towards making dreams come true specially of small businesses. Thanks for sharing such informative guiding force to be reckon with.

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