Best SBA Line of Credit: SBA CAPLine Terms, Rates, Length, Requirements

Receive personalized loan offers through PrimeRates’ quick and simple pre-application online process.

SBA Line Of Credit

An SBA line of credit can give your business access up to $5 million dollars of funding. Sounds good right? Keep reading to learn more about the 4 CAPLines SBA line of credit options.

Important Notice: For SBA Paycheck Protection Loans consider Fundera

Loan Amounts $5,000 to $500,000
APR Range Term Loans: 7% - 30%
Startup Loans: 7.9% - 19.9%
Repayment Terms Term Loans: Up to 10 Years
SBA Loans: Up to 25 Years
Time to Funding Varies
Click “Check Rates” to apply to Fundera

Learn more about the SBA Payroll Protection Program

What is an SBA line of credit?

Small Business Administration (SBA) loans are a government resource designed to help small businesses and would-be entrepreneurs obtain financing opportunities. 

Who qualifies for SBA lines of credit?

Some of the basic qualifications for businesses to qualify for an SBA line of credit include…

  • Primary business owner credit score should be 680 or better
  • 3 to 4 times maximum debt-to-equity ratio
  • Debt service coverage rate of at least 1.25 times
  • Collateral and guaranteed required

Is it difficult to get a business line of credit?

Whether your business line or credit is backed by the SBA or not it can be challenging to secure. In most cases you need cash flow, and a good credit score. 

How long does it take to open an SBA line of credit?

From application to funding it can take an average of 30-45 days to secure an SBA line of credit.

What are the 4 CAPLines SBA line of credit options?

Seasonal Line of Credit

A seasonal line of credit can help cover seasonal increases including inventory, higher labor costs, or accounts receivables. 

How to Qualify:

  • Business must meet standard SBA loan requirements
  • Business should be in operation for at least one year
  • Business should demonstrate a pattern of seasonality

Terms:

Seasonal SBA lines of credit typically have a maximum term length of 10 years. 

SBA Seasonal Line of Credit Rates:

  • SBA Seasonal Line of Credit less than 7 years: prime + 2.25% - prime + 4.25%
  • SBA Seasonal Line of Credit longer than 7 years: prime + 2.75% - prime + 4.75%

SBA Working Capital Line of Credit

Need money to cover general business operating expenses? A Working Capital SBA Line of Credit can help. 

How to Qualify:

  • Business must meet standard SBA loan requirements
  • Business must have physical inventory or accounts receivable 

Terms:

A Working Capital SBA Line of Credit typically has a maximum term length of 10 years. 

Rates:

  • Working Capital SBA Line of Credit less than 7 years: prime + 2.25% - prime + 4.25%
  • Working Capital SBA Line of Credit longer than 7 years: prime + 2.75% - prime + 4.75%

Contract Line of Credit

Businesses under a contract or purchase order can use an SBA Contract Line of Credit. This loan can help business owners meet obligations by helping them get the materials, supplies, or labor they need. 

How to Qualify:

  • Business must meet standard SBA loan requirements
  • Must show proof that your business has performed purchase orders or contracts previously

Terms:

An SBA Contract Line of Credit typically has a maximum term length of 10 years. 

Rates:

  • SBA Contract Line of Credit less than 7 years: prime + 2.25% - prime + 4.25%
  • SBA Contract Line of Credit longer than 7 years: prime + 2.75% - prime + 4.75%

Builders Line of Credit

Does your business construct or renovate commercial or residential buildings for resale purposes? If so, you may be able to qualify for an SBA Builders Line of Credit.

How to Qualify:

  • Business must meet standard SBA loan requirements
  • Proof of experience bidding on and completing similar projects

Terms:

An SBA Builders Line of Credit typically has a maximum term length of 5 years. 

Rates:

  • SBA Builders Line of Credit rates: prime + 2.25% - prime + 4.25%

How does an SBA line of credit work?

Requirements

Each SBA line of credit can have its own requirements in addition to...

  • Business must be for-profit
  • Business must meet SBA size standards
  • Business should show good character, credit management, and the ability to repay
  • Must be an eligible business type

Average Interest Rates

On average most SBA lines of credit have interest rates varying between prime + 2.25% - prime + 4.75%. The term length of the line of credit can impact the interest rate.

Hidden Costs & Fees

An SBA line of credit usually charges lenders a guarantee fee. This fee is typically passed onto the borrower. 

Average Terms

Most SBA lines of credit have a maximum term of 10 years. 

SmartBiz, SBA Loan Option:

Loan Amount: $30,000 - $350,000
APR Range: 9.7% - 11.04%
Time To Fund: Typically take several weeks to fund, but can fund as quickly as within seven days.
Loan Term: Maximum loan term is 10 years.
Origination Fee: 4.00%
How To Qualify: 675+ Personal credit score
$50,000+ Annual revenue
Great Option For: Borrowers with good credit
SBA loans
Funding real estate purchases
Refinancing debt
Credit Check? Soft credit check and hard pull
Co-Applicants Accepted? No cosigners
Direct Pay-Off To Creditors? No
Click “Check Rates” to apply to SmartBiz

» MORE: SmartBiz SBA Loan Review

Best Alternatives to an SBA Line of Credit

OnDeck

OnDeck is one of the largest online small business lenders and was founded in 2017.

Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

Pros

  • Transparent terms
  • Access to loans through business debit cards feature coming soon
  • Funds available quickly

Cons

  • Higher APRs
  • Origination fee
  • No factoring offered (all funding options incur debt)

Lendio

Lendio highlights the ability to facilitate just about any type of small business funding such as invoice factoring, startup loans, and more. 

Pros 

  • Competitive pricing
  • Large number of funding options
  • Can help just about any business
  • One simple application

Cons

  • May incur marketing or solicitation after inquiry
  • Price bidding can cause uncertainty

Kabbage

Kabbage is a small business online lender that has served over 150,000 businesses. 

Loan Amounts $2,000 to $250,000
APR Range 24% to 99%
Repayment Terms 6, 12 or 18 months
Time to Funding A few minutes to several days
Credit Score 560+
Click “Check Rates” to apply to Kabbage

Pros

  • Flexibility (use the funds how you want)
  • Determines factors besides credit score during approval process
  • Quick funding

Cons

  • Potentially confusing repayment process and fee structure
  • Short repayment terms
  • Limited product offering

FundBox

FundBox provides one of the fastest forms of small business financing, a merchant cash advance. On approved loans, you can receive the money in your account as fast as 24-48 hours.

Loan Amounts $1,000 to $100,000
APR Range 10.1% to 79.8%
Repayment Terms 3 to 6 months
Credit Score No minimum personal credit score required
Time to Funding A few minutes to several days
Click “Check Rates” to apply to FundBox

Pros 

  • Fast funds
  • No fixed monthly installments
  • Bad credit can qualify
  • No collateral

Cons

  • Expensive
  • Temporary solution
  • Funds are deducted daily decreasing your cash flow
  • Lenders operate in an unregulated industry
  • Can lose some ownership of your business

BlueVine

BlueVine is a fintech company that provides secured business loans for small to medium-sized B2B or B2G businesses.


Line Of Credit
Loan Amounts $5,000 to $250,000
APR Range 15% to 78%
Repayment Terms 6 or 12 months
Time to Funding As fast as 24 hours
Click “Check Rates” to apply to Blue Vine


Invoice Factoring
Loan Amounts $20,000 to $5 million
APR Range 15% to 68%
Repayment Terms Up to 13 weeks
Time to Funding N/A
Click “Check Rates” to apply to Blue Vine

Pros

  • Majority of business is repeat
  • Diverse and rich funding sources
  • Invoice factoring 100% online
  • No hard credit checks

Cons

  • No funding for B2C entities or freelancers
  • Personal FICO score of 600 or above preferred
  • Factoring transactions are full-recourse

Conclusion

An SBA line of credit can be an attractive option. However, if you’re in need of fast or even same-day business loans you may want to look at other options. 

Learn More About SBA Loans

How PrimeRates Works

PrimeRates provides access to personalized business loan offers through our simple and quick pre-qualification application. Once you're pre-qualified, you can select the best offer for you and finalize the business loan application with the lender.

  • Number Icon-1 50x50

    Apply in minutes

    Our simple application takes less than 5-7 minutes to complete.

  • Number Icon-2 50x50

    Select your business loan offer

    Choose the offer that best fits your needs by comparing loan amounts and terms.

  • Number Icon-3 50x50

    Receive funds quickly

    Finalize your loan offer with the lender you selected to receive your funds.

Smartphone-business-app

Ready to find the funding you need?

Scroll to Top