The SBA 7(a) Working Capital Pilot [WCP] is a monitored line-of-credit program within the SBA 7(a) program. It is designed to help eligible small businesses manage recurring, project-based, and transaction-specific working-capital needs.
Maximum Loan Amount
Eligible businesses may qualify for a WCP line of credit of up to $5 million.
The program may be structured as either:
- Transaction-Based WCP — designed to finance eligible costs associated with specific projects, contracts, or orders
- Asset-Based WCP — generally structured around eligible accounts receivable and inventory
WCP financing may support both domestic and qualifying export transactions under a single line of credit.
Potential Uses
Depending on the structure of the financing, SBA WCP financing may help qualifying businesses support:
- Large contracts and purchase orders
- Project-related expenses
- Accounts receivable
- Inventory
- Supplier and vendor payments
- Payroll and labor costs
- Eligible operating expenses connected to working-capital needs
- Seasonal or cyclical cash-flow requirements
- Domestic transactions
- Qualifying export transactions
Transaction-Based WCP financing may be particularly useful for businesses that must incur significant costs before receiving payment from customers, while Asset-Based WCP financing may allow eligible businesses to borrow against qualifying receivables and inventory.
Businesses That May Benefit
The program may be particularly relevant to businesses such as:
- Contractors
- Manufacturers
- Wholesalers
- Distributors
- Professional service businesses
- Businesses fulfilling large contracts or projects
- Businesses with substantial accounts receivable or inventory
SBA guidance indicates that WCP applicants generally should have at least one year of operating history and be able to produce timely and accurate financial statements, accounts receivable and accounts payable aging reports, and inventory information where applicable.
Repayment Structure
WCP facilities may have maturities of up to 60 months, subject to SBA requirements and participating lender underwriting. Interest-rate limits are governed by applicable SBA 7(a) rules.
Important: SBA financing is subject to lender underwriting and SBA eligibility requirements. White Feather Capital LLC is not an SBA lender. See our SBA Business Financing Disclosure for additional information.