The U.S. Small Business Administration (SBA) recently launched a new financing pilot that is particularly suited for supporting manufacturing growth.
Working capital loans, in contrast to term loans, is money available to meet short term financial obligations such as purchasing inventory, paying short-term debt, and day-to-day operating expenses.
The Working Capital Program (WCP) Pilot is part of the SBA’s suite of guaranteed 7(a) loan programs and will support revolving lines of credit up to $5 million. The new WCP combines domestic and export financing under a single program.
Manufacturers know how critical cash flow is to support inventory, payroll, and production capacity. The flexibility to offer extended sales terms that a line of credit provides can be the difference in closing a deal or not.
Please reach out to your local SBA Subject Matter Expert for more information on accessing this program.
