About this programme
CAPLines is the U.S. Small Business Administration's umbrella program for short-term and cyclical working-capital financing, delivered through the SBA's flagship 7(a) loan program. Rather than a single loan product, CAPLines is a set of four lines of credit, each built for a different cash-flow gap: Seasonal, Contract, Builders and Working CAPLine.
The SBA does not lend directly. As with all 7(a) loans, CAPLines financing is originated, underwritten and funded by an SBA-approved lender, with the SBA guaranteeing a portion of the loan against default. That guaranty is what lets participating lenders extend credit and structures that a small business often could not get on comparable terms from conventional bank financing alone.
Because CAPLines sits inside the 7(a) umbrella, it follows standard 7(a) origination, closing and servicing procedures, and standard 7(a) size, eligibility and loan-amount rules apply on top of the CAPLine-specific terms.
How it works
Seasonal CAPLine finances temporary, cyclical increases in accounts receivable and inventory (and the labor costs tied to them). It can be structured as revolving or non-revolving.
Contract CAPLine finances the direct costs of performing one or more specific contracts, including allocable overhead and administrative expenses tied to those contracts. Also offered revolving or non-revolving.
Builders CAPLine finances small general contractors building or rehabilitating residential or commercial property intended for resale. Unlike most SBA real-estate-related financing, it can cover on-site structural work, utility connections and landscaping.
Working CAPLine provides asset-based revolving credit for businesses that cannot meet standard SBA credit criteria. Borrowers draw against existing assets (typically receivables and inventory) and repay as their cash cycle turns over — this variant is used mainly by businesses that extend credit to other businesses.
Maximum maturity across CAPLines is 10 years, except Builders CAPLine, which is capped at 60 months plus the estimated construction completion time.
SBA guaranty runs up to 85% on loans of $150,000 or less and 75% on loans above $150,000 — the same guaranty schedule as standard 7(a) loans. Maximum loan amount follows the standard 7(a) ceiling of $5 million.
Interest rates are negotiated between the borrower and the lender, subject to SBA-published maximums that scale down as loan size increases (base rate + 6.5% at $50,000 or less, down to base rate + 3.0% above $350,000).
Working CAPLine loans can carry additional monitoring and collateral-servicing fees beyond standard 7(a) fees, reflecting the ongoing asset management the revolving structure requires.
Who can apply
CAPLines follows standard 7(a) eligibility: the business must be an operating, for-profit business located in the United States, meet SBA small-business size standards for its industry, and not fall into an SBA ineligible-business category.
The business must be able to demonstrate creditworthiness and a reasonable ability to repay the loan from business cash flow, and must show it cannot obtain the desired credit on reasonable terms from non-federal, non-state and non-local government sources — the standard 7(a) 'credit elsewhere' test.
Because each CAPLine variant targets a specific cash-flow pattern, fit matters: Seasonal and Working CAPLines suit businesses with cyclical receivables/inventory swings, Contract CAPLine suits businesses financing specific contract performance, and Builders CAPLine is restricted to small general contractors building or rehabbing property for resale.
How to apply
- Apply through an SBA-approved 7(a) lender, not directly through the SBA — the SBA does not originate CAPLines loans itself.
- Use the SBA's Lender Match tool (sba.gov/loans/lender-match) to get connected with participating lenders if you do not already have one.
- Discuss with the lender which CAPLine variant (Seasonal, Contract, Builders or Working) fits your business's cash-flow cycle, since each is structured for a different use.
- Provide the financial and business documentation your lender requests — required documents vary by loan size and by the individual lender's underwriting standards.
- The lender underwrites, closes and services the loan under standard 7(a) procedures, with the SBA guaranteeing a portion of it.
Frequently asked
What is CAPLines, exactly?
CAPLines is not a single loan — it is an umbrella program inside the SBA's 7(a) loan program covering four lines of credit for short-term, cyclical working-capital needs: Seasonal, Contract, Builders and Working CAPLine. Each variant is built for a different cash-flow gap.
How much can a business borrow through CAPLines?
CAPLines follows standard 7(a) loan limits, so the maximum is $5 million. The SBA guaranty on the loan runs up to 85% for amounts of $150,000 or less and 75% for amounts above that.
How long is the repayment term?
Maximum maturity is 10 years for Seasonal, Contract and Working CAPLines. Builders CAPLine is capped at 60 months plus the estimated time to complete construction, reflecting its shorter, project-based use.
Do you apply to the SBA directly?
No. CAPLines, like all 7(a) loans, is originated by an SBA-approved lender, not the SBA itself. The SBA guarantees a portion of the loan; the lender underwrites, funds and services it. The SBA Lender Match tool can connect a business to a participating lender.
Which CAPLine fits a contractor building homes for resale?
Builders CAPLine is the variant for that case — it finances small general contractors constructing or rehabilitating residential or commercial property intended for resale, and uniquely allows financing of on-site structural work, utility connections and landscaping.
Is the interest rate fixed?
It depends on what the lender offers. 7(a)/CAPLines rates are negotiated between the borrower and lender within SBA-set maximums, and can be fixed or variable — variable-rate loans may adjust when the underlying base rate changes.
What is Working CAPLine used for?
Working CAPLine is asset-based revolving credit for businesses that cannot meet standard SBA credit requirements on their own. Borrowers draw against existing assets such as receivables and inventory and repay as their cash cycle turns over; it is used mainly by businesses that extend credit to other businesses.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.