Virginia Lenders Trained in SBA CAPLines Loan Program

Nov 03, 2011, 11:29 ET from U.S. Small Business Administration

Short-term capital needs now available for contractors

RICHMOND, Va., Nov. 3, 2011 /PRNewswire-USNewswire/ -- On Thursday, November 3, 2011, the U.S. Small Business Administration's (SBA) Associate Administrator for Capital Access Steve Smits and Senior Advisor to the Associate Administrator Patrick Kelley met with representatives from area financial institutions to conduct a roundtable training session on SBA's CAPLines program and other loan products.


"This was a great opportunity for lenders to understand the changes and additions to the CAPLines program," said Regional Administrator A. John Shoraka. "Now lenders have another tool to get capital into the hands of qualifying borrowers, meet small businesses' working capital needs and help them seize new opportunities."

The reengineered CAPLines program addresses the short-term and cyclical working capital needs of small businesses and helps them manage their cash cycle, scale up, and create jobs.  

"These changes were based on conversations with lenders in all 50 states. We listened to them and create a program that works for small businesses and lenders alike," said Smits.

There are four distinct loan programs under the CAPLines umbrella:

  • The Contract Loan program is used to finance material, labor, and overhead needs for a specific contract or contracts.
  • The Seasonal Line of Credit program is used to support buildup of inventory, accounts receivable or labor and materials above normal usage for seasonal inventory.  
  • The Builders Line program provides financing for small contractors or developers to construct or rehabilitate residential or commercial property.
  • The Working Capital Line program is a revolving line of credit that provides short term working capital.

With the new CAPLines guidelines, small businesses can now borrow against purchase orders to pay for labor, materials and overhead. In addition, small business borrowers no longer have to pledge all available assets. Lastly, small business subcontractors can obtain an SBA-guaranteed line of credit to finance working on a federal or private contract.

To see if your lender is a CAPLines participant, please contact the Virginia SBA District Office at (804) 771-2400.  

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SOURCE U.S. Small Business Administration