Rates and Terms for SBA CAPLines
The CAPLines Program under the Small Business Administration lets small businesses obtain lines of credit which might be fixed or revolving, in order to meet their short-term or cyclical working capital needs. Below is a discussion of the most significant rates and terms applicable to the average business owner who qualifies for SBA loans under the CAPLines Program.
The upper limit on the available loan amount is $5 million, out of which, $3.75 million receives a guarantee from the SBA. Further, the Maximum Repayment Term is 5 years for the Builders Line program, and 10 years for the remaining three programs. For maturities involving terms less than 10 years, there is provision for a renewal of lines if the repayment period is not higher than 120 months.
As for other SBA loan requirements under the CAPLines Program, the maximum interest rates involved is between 6.75% and 9.25% on the basis of the prime rate spread. These rates can be either fixed or variable. Furthermore, the fees include a one-time guarantee fee between 2% and 3.75% of the guaranteed portion for loans having maturities higher than 12 months, determined by the loan amount. There are other fees such as renewal fees, out-of-pocket expenses, subsidy recoupment fees, late payment fees, and assumption fees.