SBA SOP 50 10 8.1, B.Ch4.B.1 — Maximum Loan Amount

SOP 50 10 8.1 B.Ch4.B.1

Effective 2026-10-01 · publisher's stamp for this provision

B. Loan Terms and Conditions for all CAPLines 1. Maximum Loan Amount a. The maximum loan amount is $5,000,000. b. Maximum Loans to Businesses with Affiliates 13 CFR § 120.151 Lenders must determine whether the Applicant has any affiliates and document the results in their credit analysis. If affiliation exists, SBA’s loan maximums apply to the Applicant, including all affiliates, as if all were a single business. c. Working Capital CAPLines To determine the maximum line amount for loans not administered through the use of a Borrowing Base Certificate, the Lender must either: i. Follow its established policies and procedures used on its similarly-sized, non-SBA guaranteed commercial lines of credit; or ii. Use the following formula: a) Divide Prior Year Net Sales by 365 to calculate the daily sales figure; b) Multiply Daily Sales figure by number of days to finance (whatever number is the business sales cycle) The result will be the estimated working capital needs. For loans administered using a borrowing base Certificate, the Lender may determine the line size based on the availability of collateral and the Borrower’s expected working capital need. d. Contract CAPLines i. For single contract financing with a single payment, the loan amount is equal to the sum of the costs of the contract, as evidenced by the project cost schedule. ii. For a single contract with multiple payments, the loan amount is the amount projected by the Borrower necessary to cover 20% over the greatest cash deficit projected for the subject contract. This permits the line to revolve within the term of the contract. iii. For multiple contract financing, the master note amount is equal to the sum of the costs of all contracts to be financed under the CAPLine, as evidenced by the project cost schedules. For future projects not yet identified, at the time the contract is obtained all costs by line item should be identified. The amount of the sub-note for each specific contract should equal the total costs of that contract. e. Seasonal CAPLines The loan amount is based on the cash flow projections. The amount should correlate to the costs of the seasonal buildup of inventory and/or receivables. f. Builders CAPLines i. For a non-revolving loan, the loan amount is based on the written proposal of costs (not anticipated selling price) provided by the applicant for a single project. ii. For a revolving loan, the master note amount is based on the cash flow projections provided by the applicant for ALL work to be performed by the small business (not just a specific project). The amount of a sub-note (for each specific project) is based on the written proposal of costs (not anticipated selling price) provided by the Applicant for that particular project.

Source: SBA SOP 50 10 8.1, B.Ch4.B.1 — Maximum Loan Amount · source URL · snapshot 0fb0c4692cf52938