SBA 7(a) working capital
Government‑backed
Government-Backed Rates & Terms
Competitive rates
Bank-Level Pricing
Up to $5M
Funding Up to $5M
How It Works
How It Works
How It Works
SBA 7(a) Working Capital loans help established and growing businesses smooth cash flow and fund everyday needs like inventory, payroll, marketing, and equipment purchases—often with competitive, government-backed pricing and longer terms. Typical amounts range from about $50,000 up to $5,000,000, with fully amortizing monthly payments and terms commonly up to 10 years for working capital. Many loans are secured to the extent collateral is available and include a personal guarantee, with standard packaging/closing costs and an SBA guarantee fee that may apply.
The process starts with a quick pre-qualification based on time in business, revenue, cash flow, and credit. From there, your lender completes full underwriting and obtains the SBA guarantee behind the scenes. Most borrowers can expect a 2–6 week timeline depending on loan size and how fast documents are provided. Eligible businesses are U.S.-based, for-profit companies that meet SBA size standards and have a reasonable credit and cash-flow profile; startups may qualify with a strong plan, equity, and projections.
⇒ Pros: government‑backed structure can enable competitive pricing; longer amortization vs. many conventional loans; broad working‑capital use of proceeds; and can be used to refinance eligible high‑cost short‑term debt.
⇒ Cons: more documentation and steps than fast online loans; collateral and personal guarantee are common; closing costs and SBA guarantee fees may apply; and funding can take weeks vs. days.
To apply, be ready with owner IDs, recent business bank statements, business and personal tax returns, year-to-date financials (P&L and balance sheet), a debt schedule, AR/AP aging, and organizational documents. During underwriting, you’ll complete standard SBA forms; startups should include a business plan and 12–24 month projections. Compared with fast online loans, SBA 7(a) takes more documentation and time—but can offer longer terms, broader uses of proceeds, and the potential to refinance eligible high-cost short-term debt, helping you lower costs and stabilize cash flow. Apply for an SBA 7(a) working capital loan now!
Compare at a glance
| Funding Option | Flexibility | Speed | Typical Cost |
|---|---|---|---|
| SBA 7(a) | Medium (fixed) | Slow | Low–Medium |
| Line of Credit | High (revolving) | Fast | Low–Medium |
| Term Loan | Medium (fixed) | Medium | Low–Medium |
Compare at a glance
| Funding Option | Flexibility | Speed | Typical Cost |
|---|---|---|---|
| SBA 7(a) | Medium (fixed) | Slow | Low–Medium |
| Line of Credit | High (revolving) | Fast | Low–Medium |
| Term Loan | Medium (fixed) | Medium | Low–Medium |
A lender-originated business loan partially guaranteed by the SBA, used for day-to-day operating needs (inventory, payroll, marketing, etc.).
Similar underwriting, but the SBA guaranty lets lenders approve more files, offer longer terms, and cap pricing within SBA limits.
- Allowed: operating expenses, inventory, payroll, rent, marketing, and eligible refinancing.
- Not allowed: personal use, speculative/passive investments, illegal purposes, certain tax issues without an approved plan.
Amounts range from small to multi-million (subject to program caps). Rates are benchmark (e.g., Prime/SOFR) + SBA-capped spread. Terms for working capital commonly up to 10 years.
Either. You can do a term loan or a revolving/non-revolving working capital line under CAPLines (e.g., Working Capital CAPLine).
Expect a blanket UCC-1 on business assets; lenders take available collateral when prudent. Personal guarantees are typical for owners ≥20%.
For-profit U.S. small businesses meeting SBA size standards, with adequate cash flow, reasonable leverage, owner experience, and satisfactory credit. Lenders test DSCR (often ≥1.15x) and “credit elsewhere.”
SBA forms, ownership/BOI info, 3 years business & personal tax returns (as applicable), YTD financials, projections (for startups/growth), bank statements, AR/AP agings, and a debt schedule.
PLP (Preferred Lender) files can move in weeks; complex files or non-PLP submissions can take longer due to SBA concurrence and third-party checks.
Often yes—if it provides a documented “substantial benefit” (better rate/term/cash flow) and meets SBA refinancing rules; you’ll need payoff letters and compliance with SBA guidelines.
A lender-originated business loan partially guaranteed by the SBA, used for day-to-day operating needs (inventory, payroll, marketing, etc.).
Similar underwriting, but the SBA guaranty lets lenders approve more files, offer longer terms, and cap pricing within SBA limits.
- Allowed: operating expenses, inventory, payroll, rent, marketing, and eligible refinancing.
- Not allowed: personal use, speculative/passive investments, illegal purposes, certain tax issues without an approved plan.
Amounts range from small to multi-million (subject to program caps). Rates are benchmark (e.g., Prime/SOFR) + SBA-capped spread. Terms for working capital commonly up to 10 years.
Either. You can do a term loan or a revolving/non-revolving working capital line under CAPLines (e.g., Working Capital CAPLine).
Expect a blanket UCC-1 on business assets; lenders take available collateral when prudent. Personal guarantees are typical for owners ≥20%.
For-profit U.S. small businesses meeting SBA size standards, with adequate cash flow, reasonable leverage, owner experience, and satisfactory credit. Lenders test DSCR (often ≥1.15x) and “credit elsewhere.”
SBA forms, ownership/BOI info, 3 years business & personal tax returns (as applicable), YTD financials, projections (for startups/growth), bank statements, AR/AP agings, and a debt schedule.
PLP (Preferred Lender) files can move in weeks; complex files or non-PLP submissions can take longer due to SBA concurrence and third-party checks.
Often yes—if it provides a documented “substantial benefit” (better rate/term/cash flow) and meets SBA refinancing rules; you’ll need payoff letters and compliance with SBA guidelines.
Frequently Asked Questions
A lender-originated business loan partially guaranteed by the SBA, used for day-to-day operating needs (inventory, payroll, marketing, etc.).
Similar underwriting, but the SBA guaranty lets lenders approve more files, offer longer terms, and cap pricing within SBA limits.
- Allowed: operating expenses, inventory, payroll, rent, marketing, and eligible refinancing.
- Not allowed: personal use, speculative/passive investments, illegal purposes, certain tax issues without an approved plan.
Amounts range from small to multi-million (subject to program caps). Rates are benchmark (e.g., Prime/SOFR) + SBA-capped spread. Terms for working capital commonly up to 10 years.
Either. You can do a term loan or a revolving/non-revolving working capital line under CAPLines (e.g., Working Capital CAPLine).
Expect a blanket UCC-1 on business assets; lenders take available collateral when prudent. Personal guarantees are typical for owners ≥20%.
For-profit U.S. small businesses meeting SBA size standards, with adequate cash flow, reasonable leverage, owner experience, and satisfactory credit. Lenders test DSCR (often ≥1.15x) and “credit elsewhere.”
SBA forms, ownership/BOI info, 3 years business & personal tax returns (as applicable), YTD financials, projections (for startups/growth), bank statements, AR/AP agings, and a debt schedule.
PLP (Preferred Lender) files can move in weeks; complex files or non-PLP submissions can take longer due to SBA concurrence and third-party checks.
Often yes—if it provides a documented “substantial benefit” (better rate/term/cash flow) and meets SBA refinancing rules; you’ll need payoff letters and compliance with SBA guidelines.
Our SBA 7(a) loan with Kredline came together smoothly—even with the extra paperwork. They pre-qualified us, organized the docs, and matched us with a lender offering competitive rates and a longer term, so payments stayed manageable. Clear communication at every step, and funding positioned us to expand without straining cash flow.
Grace M. – Owner @ Horizon Pediatric Therapy
Our SBA 7(a) loan with Kredline came together smoothly—even with the extra paperwork. They pre-qualified us, organized the docs, and matched us with a lender offering competitive rates and a longer term, so payments stayed manageable. Clear communication at every step, and funding positioned us to expand without straining cash flow.
Grace M. – Owner @ Horizon Pediatric Therapy
Our SBA 7(a) loan with Kredline came together smoothly—even with the extra paperwork. They pre-qualified us, organized the docs, and matched us with a lender offering competitive rates and a longer term, so payments stayed manageable. Clear communication at every step, and funding positioned us to expand without straining cash flow.
Grace M. – Owner @ Horizon Pediatric Therapy
