Glossary · The loan itself
CAPLine
In short
CAPLine is a specific type of SBA 7(a) loan designed to help small businesses meet short-term and cyclical working capital needs. It's not typically used for business acquisitions directly, but can support post-acquisition working capital.
What it means in a deal
While not a primary acquisition loan, a CAPLine can be useful for a buyer to manage seasonal peaks, fulfill large contracts, or finance inventory after acquiring a business. It's a revolving line of credit or term loan with varying structures (e.g., Seasonal, Contract, Builders, Working Capital). You won't use it to buy the business, but might use it to operate it.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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