SBA New credit lines up to $5 million to fund small businesses

The Small Business Administration (SBA) recently launched the 7(a) Working Capital Pilot Program (WCP) to help small businesses access flexible, competitively-priced lines of credit. This initiative aims to address the growing need for working capital, especially in a high-interest rate environment, by providing more adaptable financing options compared to traditional term loans​ (SBA)​​ (Executive Gov)​.

The WCP program features an annual guaranty fee structure and can support both transaction-based and asset-based loans. This flexibility allows businesses to finance specific orders or projects or leverage their assets to secure working capital. The program is part of the Biden-Harris administration's efforts to support small businesses in creating jobs and spurring economic growth​ (Executive Gov)​​ (Small Business Trends)​.

The SBA 7(a) loan program, under which the WCP falls, is a widely used financing option that can offer loans up to $5 million. These loans have variable interest rates and flexible repayment terms, making them suitable for various business needs, including working capital, purchasing equipment, and refinancing debt. The application process involves selecting an SBA-approved lender, completing the required documentation, and submitting it for review​ (Small Business Trends)​​ (Fit Small Business)​.

For more detailed information about the WCP program and how to apply, you can visit the SBA's official website or the relevant news articles​ (SBA)​​ (Executive Gov)​​ (Small Business Trends)​.