SBA rules · SOP 50 10 8.1

Can you get an SBA line of credit?

Yes, the SBA permits revolving lines of credit under the 7(a) program, but only under five specific delivery methods: SBA Express, CAPLines, Manufacturers’ Access to Revolving Credit (MARC), Export Express, and the Export Working Capital Program (EWCP).

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Permitted programs: Revolving lines of credit are prohibited as a general use of 7(a) proceeds except under SBA Express, CAPLines, EWCP, MARC, and Export Express. Standard 7(a) and 7(a) Small loans do not permit revolving facilities.
SBA Express revolving lines: SBA Express lines of credit are capped at $500,000 and may not exceed a total maturity of 10 years inclusive of a term-out period. Lines exceeding 12 months must have a term-out period that is not less than the draw period, and under no circumstances may advances occur after the initial 60-month period.
CAPLines subprograms: CAPLines finance cyclical or short-term operating capital needs up to $5,000,000 under four subprograms: Working Capital CAPLines, Contract CAPLines, Seasonal CAPLines, and Builders CAPLines. Working Capital, Contract, and Seasonal CAPLines carry a maximum maturity of 10 years, while Builders CAPLines cannot exceed 60 months plus the estimated completion time.
MARC revolving credit: The MARC program is a revolving facility for eligible manufacturers and supply chain businesses with a maximum loan amount of $5,000,000 for manufacturers or $2,000,000 for other eligible industries. It has a maximum maturity of 20 years, consisting of a revolving period of up to 10 years followed by a fully amortizing term-out period of up to 10 years.
Export programs: Export Express allows revolving lines of credit up to $500,000 with maturities capped at 7 years. EWCP provides revolving transaction-based or asset-based lines of credit up to $5,000,000 with a maximum maturity of 36 months.

The source

What the SOP says

“Revolving lines of credit, except under SBA Express, CAPLines, Export Working Capital Program (EWCP), Manufacturers’ Access to Revolving Credit (MARC), and Export Express programs;

SOP 50 10 8.1, Chapter 3: Uses of Proceeds > 13 CFR § 120.130 (lines 803-817)✓ Verified

“May not exceed 10 years inclusive of a term-out period.

SOP 50 10 8.1, Appendix 17: 7(a) Loan Maturity Requirements > SBA Express lines of credit: (lines 5396-5398)✓ Verified

“Revolving loans of more than 12 months must be structured with a term-out period that is not less than the draw period. Once the loan is amortized, no additional draws are permitted. Under no circumstances may there be any advances after the initial 60 month period.

SOP 50 10 8.1, Appendix 17: 7(a) Loan Maturity Requirements > Revolving loans: (lines 5399-5406)✓ Verified

“Lines of credit under CAPLines finance the short-term operating capital needs (revolving and non-revolving) of eligible small businesses.

SOP 50 10 8.1, Chapter 4: 7(a) CAPLines > 13 CFR § 120.390 (lines 1996-1999)✓ Verified

“The maximum maturity on a Working Capital, Contract, or Seasonal CAPLine is 10 years.

SOP 50 10 8.1, Appendix 17: 7(a) Loan Maturity Requirements > CAPLines (All Variants) (lines 5415-5417)✓ Verified

“The loan must not exceed 60 months plus the estimated time to complete construction or rehabilitation.

SOP 50 10 8.1, Appendix 17: 7(a) Loan Maturity Requirements > Builders CAPLines (lines 5418-5422)✓ Verified

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