SBA Launches Working Capital Pilot Program
At Choice Bank, we pride ourselves on our proven expertise in small business lending as an SBA Preferred Lender (PLP) in Minnesota and North Dakota. With an impressive track record and unwavering commitment to helping small businesses thrive, Choice Bank has earned top rankings from the Small Business Administration (SBA) in both North Dakota and Minnesota.
As part of our continued dedication to serving local small businesses, we are excited to offer the SBA 7(a) Working Capital Pilot Program, which expands access to credit and supports small business growth.
What is the SBA 7(a) Working Capital Pilot Program?
The SBA 7(a) Working Capital Pilot Program (WCP) is designed to provide small businesses with flexible and affordable lines of credit.
- Purpose: The program aims to help small businesses manage their working capital needs efficiently, supporting both domestic and international transactions.
- Loan Structure: It offers monitored lines of credit with a new annual fee structure, allowing businesses to pay only for the time they need the credit.
- Types of Loans:
- Transaction-Based Loans: These allow businesses to access working capital earlier in their sales cycle, funding individual projects or orders.
- Asset-Based Loans: These provide working capital against assets like accounts receivable and inventory, helping businesses manage cash flow and support supply chain resiliency.
- Loan Terms: The maximum loan size is $5 million, with up to 85% SBA guaranty for loans up to $150,000 and 75% for larger loans. The maturity can be up to 60 months.
“The benefits of this program are structured to provide more working capital to a business than they would qualify for conventionally,” said John Hicks, SBA Business Development Officer.
If you would like to learn more about the Working Capital Pilot Program and how it can benefit your company, please reach out to John Hicks, SBA Business Development Officer at Choice Bank at (612) 916-0165 or j.hicks@bankwithchoice.com, or Cristen Purdy, SBA Market President at (763) 398-5817 or c.purdy@bankwithchoice.com.
Every business is unique, and so is our financing. At Choice, we recognize small businesses impact the culture and economy from our local communities to nationally. An SBA loan can provide the long-term funding you need to take your small business to the next level. Learn more here!