Glossary · The loan itself
Credit Line(Line of Credit)
In short
A flexible loan arrangement allowing a borrower to draw funds up to a set limit, repay, and redraw as needed. It's used for working capital or short-term needs.
What it means in a deal
While a 7(a) loan can include a working capital component, it's typically a term loan, not a revolving credit line. The SBA does offer Express lines of credit, but for an acquisition, the primary 7(a) loan covers purchase and longer-term working capital needs.
Official sources
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
Common questions about Credit Line
- Can funds from a home equity line of credit be used for my equity injection?
- Can I use a secured personal line of credit as part of my equity injection?
- How does using funds from a home equity line of credit affect my down payment?
- Can funds from a home equity line of credit be used for the down payment?
- Can I use funds from a home equity line of credit for my 10% equity injection?
- Can I use funds from a personal line of credit as part of my equity injection?
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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