# What is a Builders CAPLine and who can use one?

**Short answer:** A Builders CAPLine finances small general contractors building or rehabbing residential or commercial property for resale. The term cannot exceed 60 months plus the estimated time to complete construction or rehabilitation (SOP 50 10 8.1, Sec. B, Ch. 4, Para. A.4; 13 CFR 120.391, 120.396).

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Last checked: 2026-11-08

A Builders CAPLine finances small general contractors and home builders. The money is for constructing or rehabilitating residential or commercial property for resale (SOP 50 10 8.1, Sec. B, Ch. 4, Para. A.4; 13 CFR 120.391).

## Who qualifies

- A record of profitable construction or renovation of comparable type and size.
- You do the work yourself, or keep at least one supervisory employee on site for the entire construction phase.
- Proof of prompt past payments to suppliers and subcontractors.

## What it can pay for

Direct construction or substantial renovation costs, including labor, materials, equipment rental, permits, utility connections and landscaping (Para. A.4.b). Renovation must cost at least one-third of the purchase price or fair market value. Land can be financed if it is no more than 33 percent of project cost. Up to 5% of project cost can go to improvements that benefit a whole subdivision.

## What it cannot pay for

Vacant land for future construction, rental property held for future rehab, or refinancing (Para. A.4.b).

## Term and repayment

The term cannot exceed 60 months plus the estimated time to complete construction or rehabilitation (Appendix 17, Para. B.5). Each project must be repaid within 36 months after completion or at sale, whichever is less (Para. F). You must pay interest at least semi-annually from your own resources.

The property must be sold at arm's length to an unaffiliated buyer. SBA may allow rental pending sale only if that helps sell it (Para. A.4).

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 4, Paras. A.4 (Para. A begins p. 144) and F (p. 154)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Appendix 17, Para. B.5 (Para. B begins p. 391)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.391](https://www.ecfr.gov/current/title-13/section-120.391)
- [13 CFR § 120.394](https://www.ecfr.gov/current/title-13/section-120.394)
- [13 CFR § 120.396](https://www.ecfr.gov/current/title-13/section-120.396)
- [13 CFR § 120.397](https://www.ecfr.gov/current/title-13/section-120.397)