2017 Hurricane Recovery: You may be eligible for an SBA loan deferment

Office of Capital Access | Resources

CAPLines is an umbrella program that helps small businesses meet their short-term and cyclical working-capital needs. It features five lines:

  • Seasonal Line. Borrowers must use the loan proceeds solely to finance the seasonal increases of accounts receivable and inventory (or in some cases associated increased labor costs); it can be revolving or non-revolving.

  • Contract Line. This line finances the direct labor and material cost associated with performing assignable contract(s); it can be revolving or non-revolving.

  • Builders Line. If you are a small general contractor or builder constructing or renovating commercial or residential buildings, this can finance direct labor and material costs. The building project serves as the collateral, and loans can be revolving or non-revolving.

  • Standard Asset-Based Line. This is an asset-based revolving line of credit for businesses unable to meet credit standards associated with long-term credit. It provides financing for cyclical growth, recurring and/or short-term needs. Repayment comes from converting short-term assets into cash, which is remitted to the lender. Businesses continually draw from this line of credit, based on existing assets, and repay as their cash cycle dictates. This line generally is used by businesses that provide credit to other businesses. Because these loans require continual servicing and monitoring of collateral, additional fees may be charged by the lender.

  • Small Asset-Based Line. This is an asset-based revolving line of credit of up to $200,000. It operates like a standard asset-based line except that some of the stricter servicing requirements are waived, providing the business can consistently show repayment ability from cash flow for the full amount.

Maximum Loan Amounts

Except for the Small Asset-Based Line, which has a maximum loan amount of $200,000, CAPLine loans follow SBA's maximum loan amounts.

Loan Maturities

Each of the five lines of credit has a maturity of up to five (5) years. But because each is tailored to an individual business’s needs, a shorter initial maturity may be established. CAPLines funds can be used as needed throughout the term of the loan to purchase short-term assets, as long as sufficient time is allowed to convert the assets into cash at maturity.

Interest Rates, Percentage of Guaranty, Fees

See Terms and Conditions for SBA 7(a) Loans.


Holders of at least 20 percent ownership in the business are generally required to guarantee the loan. Although inadequate collateral will not be the sole reason for denial of a loan request, the nature and value of that collateral does factor into the credit decision.

For More Information

For more information, contact your nearest SBA District Office.