This is quicker and easier than what you can expect with a Capline.
To qualify for a Contract Capline, in addition to the 7(a) requirements your business needs:.
A Builders SBA Capline provides up to $5 million to build
or renovate residential or commercial buildings.
To qualify for an SBA Capline, the general requirements are similar to an SBA 7(a) loan.
If you manufacture or sell seasonal products or services,
you would benefit from a seasonal SBA Capline.
And Marathon Petroleum is considering reversing its Capline crude line to bring barrels from Illinois to the Gulf.
Rather than a one-size-fits-all approach, the SBA offers four Capline programs that are meant to fill different
cash flow needs.
What's more, you can use the SBA Capline for as long as 10 years without having to apply again.
As cash flow comes in from the services you provide,
you can use it to pay down your SBA Capline.
Similar to a builder Capline, your lender may limit the amount you can
borrow against the assets you pledge as collateral.
With a builder SBA Capline, you will receive advances as the construction project is completed
and improvements are made to the property.
SBA Capline rates are fixed or variable,
tied to base rates like the prime rate and rise and fall with market conditions.
A contract SBA Capline provides up to $5 million to purchase materials
and fund labor associated with assignable contracts, subcontracts and purchase orders.
A contract SBA Capline provides businesses with up to $5 million in funding to purchase materials
and pay for labor associated with the contract.
A builders SBA Capline provides contractors
and home builders with up to $5 million in funding to build or renovate residential or commercial buildings.
If you build homes, or you're a contractor for other commercial or residential real estate projects,
you would benefit from a builders SBA Capline.
With a builders SBA line of credit, you will need to provide information about the project
you're planning to finance using the SBA Capline.
If you're in need of a fast line of credit,
a better option than an SBA Capline might be a small business line of credit from OnDeck.
With a builder SBA Capline, your lender cannot take any less than a second
lien position on the real estate property that you are constructing or renovating.
With a seasonal SBA Capline, you can request advances at any time during your seasonal
period for the cash you need to pay for labor, materials or inventory.
With a contract SBA Capline, you will need to provide your lender with a first
lien assignment of the contract, subcontract or purchase order as well as the resulting proceeds.