One of the most popular uses for an SBA 7(a) loan is to obtain adequate working capital for a start up or a long-time business. No business can operate without the necessary funds for hiring employees, purchasing inventory, and advertising. However, the working capital you need for all these processes is not always readily available, and that’s where an SBA loan can really help.

Available SBA Programs

By far the most popular loan program currently in use by the Small Business Administration is its 7(a) loan program. However, there are number of other specialized programs which are also available to borrowers under certain circumstances. If you need working capital, your business may qualify for one of these specialized loans, assuming you fall into any of the specific categories they are meant to serve.

One such loan program caters to international trade, and this is intended to help businesses which export internationally. The SBA program will offer a $4 million guarantee to provide the working capital you need for your export business. For those companies involved with domestic export sales, there is an Export Working Capital program which will advance up to $5 million to cover the cost of domestic export transactions. Such loans require that your business be in operation for a minimum of 12 months, and that the Export Management Company will assume title to all goods being exported.

CAP Lines is a government-sponsored revolving line of credit which will provide short-term financing for seasonal businesses or other temporary financial needs. These loans provide working capital to businesses which can demonstrate an adequate level of Accounts Receivable, as well as some volume of inventory. One other loan program which caters to businesses needing smaller amounts working capital are the SBA Microloans, which are backed up to an amount of $50,000 by the government.

Is Your Company Looking to Apply for an SBA 7(a) Loan? 

We have worked with the Small Business Administration in the past, and we continue to provide financial assistance to clients who apply for these types of loans. If you’re applying for a 7(a) loan, contact us at Infinity Lending Solutions so we can work together on a financial solution.