Borrower guide · Use case
SBA loan for working capital
Working capital is the most flexible thing an SBA loan can fund — payroll, inventory, a growth push — and there are two different structures for it.
What working capital can fund
Under eligible use of proceeds, a 7(a) can put working capital toward payroll, inventory, supplies, marketing, hiring and general expansion — effectively the cost of running and growing the business. It is the most flexible SBA use, which is why it is the most common.
Term loan vs. a revolving line
A term loan gives you a lump sum on a fixed amortizing schedule — good for a one-time need or a growth investment. CAPLines is the SBA’s revolving option for cyclical or contract-based needs, where you draw and repay as cash flows in and out. Match the structure to the need.
How much, and on what terms
Working-capital terms run up to 10 years, and smaller amounts are often lightly secured. The size is driven by debt-service coverage — what your cash flow supports — not by a headline maximum. Size it in the borrowing power calculator.
Borrowing power calculator
Turn your cash flow into the working-capital loan a lender would support.
See your working-capital amount →Working capital in context
our dataMost SBA loans are modest — the median is $178,850, with half between $55k and $500k — and working-capital loans cluster there. See what your cash flow supports below.
Common questions
Can you use an SBA loan for working capital?
Yes — it is the most common and flexible SBA use, covering payroll, inventory, marketing, hiring and expansion.
What is the term on an SBA working-capital loan?
Up to 10 years for a standard 7(a) term loan, fully amortizing with no balloon.
Term loan or line of credit for working capital?
A term loan suits a one-time need or growth investment; a CAPLines revolving line fits cyclical or contract-based needs where you draw and repay as cash moves.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.