The SBA Working Capital Pilot (WCP) program offers business lines of credit as part of the SBA 7(a) loan program. Compared with the lines of credit offered through the SBA CAPLines program, the WCP program provides greater flexibility and serves a wider range of small-business owners.
Like other SBA loans, WCP lines of credit provide large funding amounts, competitive interest rates and long terms. They’re a good option for established businesses that want access to working capital.
How much do you need?
What is the SBA Working Capital Pilot program?
The SBA Working Capital Pilot program falls under the umbrella of the SBA 7(a) loan program. It offers business credit lines that are partially guaranteed by the U.S. Small Business Administration. These working capital lines of credit are issued by participating lenders, typically banks and credit unions.
The WCP is a pilot loan program, meaning these products are available for a limited time unless the program is extended or made permanent. Currently, the program is set to run from Aug. 1, 2024, through July 31, 2027.
How does the SBA Working Capital Pilot program work?
SBA Working Capital Pilot lines of credit are available up to $5 million and can be used for a variety of working capital needs. The SBA guarantees 85% of lines of $150,000 or less and 75% of larger lines.
There are two types of credit lines available through this program:
Transaction-based. These lines of credit can be used for a single or multiple purposes during the term. Transaction-based WCP credit lines may be revolving or non-revolving based on the needs of the business.
Asset-based. These products are revolving lines of credit that are backed by specific collateral, in the form of a borrowing base certificate (BBC). A BBC reports the value of your assets, usually accounts receivable and inventory, that support your credit line amount.
With both types of WCP lines of credit, your lender must perform a review on an annual basis (at a minimum). As part of this process, it will need to document that you are creditworthy, can make your payments and are compliant with the WCP program requirements.
If you can’t meet these criteria, the lender will not be able to approve any further draws nor renew the credit line until the requirements are met.
Who should use the SBA Working Capital Pilot program?
The SBA Working Capital Pilot program was created to offer affordable working capital to small businesses, allowing them to take advantage of growth opportunities. In particular, this program can be a good option for borrowers who:
Want flexible financing. Compared with a traditional business term loan, the SBA WCP program provides greater flexibility for short-term funding needs. The program’s unique guarantee fee structure also makes this type of shorter-term financing more cost-effective. (See more on fees below.)
Operate globally. You can use the SBA Working Capital Pilot program’s line of credit to support both domestic and international orders. If you’re just getting started in the export business, you can use the line of credit to expand your reach without having to get a separate credit line.
Don’t meet the specific guidelines of the CAPLines program. To qualify for a business line of credit through the CAPLines program, you’ll need to meet more specific eligibility and use of proceeds requirements. The SBA Working Capital Pilot program line of credit can be used for more general working capital needs.
Manufacturers have options
In March 2025, the SBA announced its Made in America Manufacturing Initiative. One goal of this initiative is to expand use of the WCP program to help manufacturers fund inventory purchases and export-related expenses.
But if you're a manufacturer (NAICS codes 31-33), it's worth comparing your options. The SBA also launched a program in October 2025 built specifically for manufacturers, Manufacturers' Access to Revolving Credit (MARC), which may better fit your needs than the WCP.
SBA Working Capital Pilot program features
Terms
The maximum term on an SBA Working Capital Pilot line of credit is 60 months. For this program, the “term” refers to the period of time in which the lender agrees to lend you this credit. Your lender can, however, set independent loan “maturities” (usually on an annual basis) to take place during the term.
In other words, your maturity would dictate your repayment period. If your lender sets a maturity of one year, for example, you would need to make your final repayment on any funds you borrowed by the end of those 12 months.
Interest rates
Interest rates on SBA Working Capital Pilot lines of credit are the same as SBA 7(a) loan rates. This means that rates are typically set based on the prime rate, plus a spread that’s negotiated between you and your lender. Rates can be fixed or variable, but are subject to SBA maximums, which are determined by the size of your credit line.
Currently, fixed rates range from 12% to 15%, and variable rates range from 10% to 13.5%.
Fees
Like other SBA 7(a) loans, your lender can charge a variety of fees on top of interest, including:
Service and packaging fees.
Extraordinary service fees.
Out-of-pocket expense fees.
Late payment fees.
The SBA guarantee fee works differently for the WCP program than it does for other 7(a) loans. Instead of scaling with your loan size, the WCP upfront guarantee fee scales with the maturity term on the line of credit. The longer the term, the higher the fee, which is calculated as a percentage of the guaranteed portion of your credit line.
Here are the fees for FY2027, which apply to all 7(a) loans approved on Oct. 1, 2026, through Sept. 30, 2027:
12 months or less: 0.25%.
13 to 24 months: 0.525%.
25 to 36 months: 0.80%.
37 to 48 months: 1.075%.
49 to 60 months: 1.35%.
The benefit of this structure: You only pay for the maturity you actually need, rather than a fee based on your loan amount.
Pros and cons of the SBA Working Capital Pilot program
Pros
Competitive interest rates.
Large credit line amounts.
Can be used for a variety of working capital needs.
Option for one-on-one support from SBA Finance Managers.
Cons
Can be hard to qualify.
Slow to fund.
Requires collateral and personal guarantee.
Only available until July 31, 2027, unless SBA extends it.
SBA Working Capital Pilot program requirements
To qualify for an SBA line of credit from the WCP program, you’ll need to meet the standard set of SBA loan requirements, including:
Must be a for-profit business, in an eligible industry, operating in the U.S.
Must be a small business, as defined by the SBA.
Must be able to show your creditworthiness and ability to repay the loan.
Must be 100% owned by U.S. citizens or U.S. nationals whose principal residence is in the U.S. or its territories.
Can't get the desired loan on reasonable terms from other lenders.
Must be able to demonstrate the need for a loan and show the business purpose for which you’ll use the funds.
Cannot be delinquent on any existing government loans.
Owners of 20% or more of the business must provide a personal guarantee.
You’ll also need to meet program-specific requirements, which include the following:
Must have a history of at least 12 full months of operations (i.e., generating revenue from your business operations).
Must be able to provide timely and accurate financial statements, accounts receivable and accounts payable aging reports and inventory reports.
Keep in mind that although the SBA doesn’t define credit score or annual revenue requirements, you’ll need to meet these qualifications as set by your lender. In general, it’s helpful to have good credit (a score of 650 or higher) and strong revenue.
How to apply for the SBA Working Capital Pilot program
To apply for a line of credit through the SBA Working Capital Pilot program, you’ll work directly with a participating lender, like a bank or credit union. To find a lender, follow these steps:
Contact the financial institution you currently have a relationship with to ask if it offers this type of SBA loan.
Try the SBA’s Lender Match tool.
Consider our list of the best SBA lenders.
Although the application process will vary based on your lender, you’ll generally need to provide:
SBA Form 1919, Borrower Information Form.
SBA Form 2534, Addendum to SBA Form 1919.
SBA Form 912, Statement of Personal History.
Personal financial statement (you can use SBA Form 413).
Business financial statements, such as balance sheets, profit and loss statements and projected financial statements.
Accounts receivable and accounts payable aging reports and applicable inventory reports.
Business certificate or license.
Loan application history.
Income tax returns.
Existing debt schedule, if applicable.
Resumes for each business owner.
Business overview and history.
Business lease.
For this program, the lender will also require a lien on any collateral associated with transactions that you finance using your WCP credit line. This may include inventory, accounts receivable and contract proceeds, among other assets.
Once you submit your application, the underwriting and closing processes can take anywhere from 30 to 90 days. SBA Preferred Lenders may offer faster processing times, as they can issue loans without prior SBA approval.
» MORE: How to apply for an SBA loanloan
Article sources
- 1.Federal Register. 7(a) Working Capital Pilot Program. Accessed Sep 28, 2026.
