The Small Business Administration is expanding its loan programs with the 7(a) Working Capital Pilot Program, which is set to launch within the year.
WCP is a line of credit product that features an annual guaranty fee structure that works to offer greater flexibility than a traditional term loan to meet specific business needs, the SBA said Thursday.
WCP can, for example, offer transaction-based loans to fund individual orders or projects; or asset-based loans, which offer small businesses a means to access working capital against their assets.
SBA Administrator Isabel Casillas Guzman said her organization launched WCP to help small businesses finance growth opportunities by securing working capital through competitively-priced lines of credit.
“As the Biden-Harris Administration doubles down on its commitment to help entrepreneurs achieve their American Dreams of business ownership, this newly structured line of credit will empower more small businesses to pursue opportunities from President Biden’s Investing in America agenda, create jobs, and grow their businesses,” Guzman said.
