SBA Launches Working Capital Pilot Program

Small businesses are now eligible to apply for a new SBA credit line of up to $5 million.

The SBA announced the creation of the 7(a) Working Capital Pilot Program in June. As of Aug. 1, 2024 lenders can officially accept applications for the program. 

The program offers a newly structured line of credit, made by 7(a) lenders and backed by the SBA, to give more flexibility to businesses than a traditional term loan. 

The loan program can provide financing for domestic and export purposes and brings together features from existing permanent 7(a) line of credit delivery methods. 

Loan Options

The Transaction-Based WCP allows small businesses to fund individual projects or orders. These loans enable access to working capital earlier in the sales cycle. 

Asset-Based WCP loans provide small businesses with a cost-effective way to access working capital against their assets, allowing small businesses to better manage cash flow while also supporting supply chain resiliency. 

The loan program can provide financing for domestic and export purposes. 

For small businesses participating in the Home Energy Rebate programs, the WCP provides a new solution to help companies ramp up capacity and mobilize service.

Small busineses in the manufacturing, wholesale, and professional services industries are eligible for the loan, with loans capped at $5 million. 

Businesses interested in applying can use SBA’s lender match to find a participating partner.