What is CAPLines?

The CAPLines program is designed to help small businesses meet their short-term and cyclical working capital needs.   The programs can be used to finance seasonal working capital needs; finance the direct costs of performing certain construction, service and supply contracts; finance the direct cost associated with commercial and residential construction; finance operating capital; and consolidate short-term debt. SBA provides up to an 85 percent guarantee.  There are four distinct loan programs under the CAPLine 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 is a revolving line of credit that provides short term working capital.