The U.S. Small Business Administration (SBA) has launched the 7(a) Working Capital Pilot Program, providing small businesses with access to competitively priced lines of credit up to $5 million.
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The program features an innovative fee structure, allowing businesses to customize their loans and reduce costs for shorter loan maturities.
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The 7(a) WCP supports transaction-based lending, enabling small businesses to access working capital earlier in their sales cycle and fund individual projects or orders.
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Small businesses can leverage their assets to secure loans, providing a cost-effective means to manage cash flow and support growth initiatives.
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The program facilitates access to global markets for small businesses under one facility, supporting both domestic and international sales.
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Businesses must have at least 12 months of operational history and provide accurate financial statements to qualify for the 7(a) WCP.
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Lenders approved to process 7(a) loans can begin offering the 7(a) WCP starting August 1, 2024. Interested business owners can apply through the SBA's website or their lender's platform.
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The SBA's 7(a) Working Capital Pilot Program represents a significant step in enhancing financial access for small businesses, supporting entrepreneurship and job creation.
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