The CAPlines Program is an umbrella program offered by the SBA or Small Business Administration. Under the CAPlines umbrella there are five short-term working-capital loan programs.
1. Seasonal Line
This line provides advances in high-peak business seasons.
This line helps with inventory and accounts receivable needs.
This line provides revolving and non-revolving options to the borrower.
2. Contract Line
This line offers financing for labor and material costs which are related to performing assignable contracts.
This line offers revolving and non-revolving options to the borrower.
3. Builders Line
This line offers financing for direct labor and material costs to small general contractors for commercial construction or renovation.
This line offers revolving and non-revolving options to the borrower.
4. Standard Asset-Based Line
This line is for businesses who do not meet the credit standards related with long-term credit.
This line is based on the amount of assets of the borrower.
There may be additional fees with this line because of the stricter monitoring requirements.
Businesses can draw from this line of credit according to the amount of assets they have.
The borrower repays the lender according to the cash cycle.
5. Small Asset-Based Line
This line offers a revolving line of credit of up to $200,000 that is asset-based.
This line has less monitoring requirements than the Standard Asset-Based Line.
Maturity for each of the five lines of credit is 5 years, but shorter maturity can be established on a case-by-case basis. Almost all small businesses are eligible.
Please note that this is not a typical business grant but rather a small business loan. The SBA (Small Business Administration) can offer reduced interest rate loan programs for small businesses.
For more detailed information about the CAPlines Programs.
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