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Caplines is an umbrella program to help small businesses meet their short-term and cyclical working-capital needs. Caplines are generally backed by the SBA who guarantees up to 75% of a loan. There are 5 Caplines programs for small businesses:

  • Seasonal
  • Contract
  • Builders
  • Standard Asset-based
  • Small Asset-based

Seasonal programs are used during the busy season to advance money against anticipated inventory and accounts receivable. These can be revolving or non-revolving advances. Contract programs provide funding for the direct cost of labor and materials in an assignable contract and can also be revolving or non-revolving. Builders programs finance the direct cost of labor and materials for a contractor building or renovating a commercial or residential property. This is expecially beneficial for small general contractors or builders. Standard Asset-based programs basically involve a revolving line of credit that is payed back by converting short-term assets into capital to be paid to the lender. It can provide funding for cyclical growth and/or short term funding needs. It is repayed when short term assets are turned into cash which is then given to the lender. Companies can draw from the line of credit and repay according to their cash cycle. This type of line is mainly used by businesses that extend credit to other businesses. Small asset-based programs are the same as the standard asset-based line but without some of the strict servicing requirements.


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