You have probably heard that the SBA CAPLines program is a great source of working capital financing for small businesses, but does your business qualify for this type of financing? While standard SBA eligibility requirements apply (such as size standards) in order to qualify, there are several additional CAPLines-specific eligibility regulations that must be met.
Your small business:
● Must have been in business for at least 12 months
● Must have commercial accounts receivable (not including consumer dept)
● Must demonstrated a need for revolving credit
● Must have at least one year of positive cash flow
Must have been in business for at least 12 months
While Celtic Bank will consider financing early stage and start-up working capital financing requests under the SBA Express Program you need to have been in business for at least 12 months to qualify for the CAPLines program.
Your business must have commercial accounts receivable.
There are several industries that commonly utilize the CAPLines Program that meet the commercial accounts receivable criteria such as manufacturing, wholesale, import-export, and commercial services (like staffing or transportation).
Must have demonstrated a need for revolving credit
The Standard Asset Based CAPLines Program is intended to bridge the working capital gap created from the carrying of receivables and inventory. Common working capital needs include the purchasing of inventory, materials used in production and payroll.
Must have at least one year of positive cash flow
In order to qualify for the CAPLines Program, the applicant must be able to demonstrate sufficient cash flow to service all existing fixed business and personal obligations (repayment ability) for at least one complete year. The period that is most commonly used is the most recent completed fiscal year-end (FYE) and the supporting documentation used in the analysis includes business and personal tax returns, a business debt schedule, and consumer credit report. If the applicant is unable to demonstrate positive cash flow including sufficient ability to afford the interest-only provisions for the most recently completed FYE, the loan request must declined.
Are you interested in obtaining a CAPLine Loan to grow your small business? Contact Celtic Bank to discover how we can help you achieve your business goals.
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