Working capital
SBA Working Capital Loans
SBA 7(a) loans and lines of credit provide working capital to cover payroll, inventory, marketing, and day-to-day operations — with longer terms and lower rates than most short-term options.
Term loan or line of credit
SBA 7(a) can be a term loan for a specific need, or an SBA line of credit (CAPLines) for ongoing/seasonal working capital.
Better than merchant advances
SBA working capital carries far lower effective rates and longer repayment than merchant cash advances or short-term online loans.
What lenders assess
Cash flow, time in business, and credit. Startups can qualify but face more scrutiny than established businesses.
Frequently asked
Can I use an SBA loan for working capital?
Yes — SBA 7(a) loans and CAPLines lines of credit are commonly used for payroll, inventory, and operating expenses.
Is an SBA loan cheaper than a merchant cash advance?
Almost always. SBA rates and terms are dramatically more affordable than merchant cash advances or short-term online loans.
Other ways businesses use SBA loans
Ready to get started?
Tell us what you need and we'll match you with SBA lenders active in your state and industry — you pick who to talk to.
Get matched with lenders