Which SBA loans can be revolving lines of credit?

Five programs and one pilot can revolve. SOP 50 10 8.1 bars revolving lines of creditlines of creditA credit limit you can draw on, repay and draw on again. except under SBA Express, CAPLines, EWCP, MARC and Export Express (Sec. A, Ch. 3, Para. B.4). The regulation is 13 CFR 120.130(c).

The programs

• SBA Express. Up to $500,000. A line can run 10 years, including any term-out period, with no advances after the first 60 months (App. 17, Para. B.3).
• CAPLines. Up to $5,000,000. Working Capital, Contract and Seasonal lines can run 10 years (App. 17, Para. B.5).
• MARC. Up to $5,000,000 for manufacturers and $2,000,000 for other eligible industries. The maximum maturity is 20 years (App. 17, Para. B.4).
• Export Express. Up to $500,000. An Export Express line of credit can run 7 years (App. 17, Para. B.6).
• EWCP. Up to $5,000,000, with a maximum maturity of 36 months (App. 17, Para. B.7).
• 7(a) Working Capital Pilot. Up to $5,000,000. SBA waived the revolving restriction for this pilot, which runs August 1, 2024 through July 31, 2027 (89 FR 57353).

What cannot revolve

7(a) Small loans are term loans by definition (Sec. B, Ch. 2). A Standard 7(a) loan is not on the exception list. A 504 loan finances long-term fixed assets.

Structure matters

An SBA Express revolving loan of more than 12 months needs a term-out period at least as long as the draw period.