Overview

SBA Express and CAPLines are both 7(a) program options administered through SBA-approved lenders, but they serve different short-term needs. SBA Express aims for speed and simplicity when a business needs a one-off lump sum. CAPLines is a suite of subprograms that deliver revolving credit to cover cyclical expenses, seasonal inventory purchases, contract performance costs, or short-term construction.

How each works (plain terms)

  • SBA Express: This 7(a) lender program offers expedited SBA response (typically an eligibility determination in about 36 hours) so lenders can move faster. It’s designed for relatively smaller loans and simpler underwriting—useful when you need quick funds for an urgent expense or an unexpected opportunity (SBA.gov).

  • CAPLines: A collateralized line of credit under 7(a) that has four main subprograms—Seasonal CAPLine, Contract CAPLine, Builders CAPLine, and Working Capital CAPLine—to match common short-term cash needs. Borrowers draw, repay, and redraw up to the agreed limit during the life of the line (SBA.gov).

Who typically uses each option

  • Choose SBA Express if: you need a single lump-sum infusion quickly (equipment repair, a short-term payroll gap, an unexpected vendor bill) and your borrowing amount fits the express lender criteria.

  • Choose CAPLines if: your business has predictable seasonal swings, performs contracts that need upfront cash, builds spec homes or projects before payment, or requires a standing working-capital facility to smooth cash flow.

Key differences at a glance

  • Speed: SBA Express is faster for lender decisions; CAPLines involves more underwriting because lines require ongoing monitoring.
  • Structure: SBA Express is usually a term loan; CAPLines is a revolving line of credit with subprograms tailored to use cases.
  • Use cases: Express = one-time, near-term needs. CAPLines = recurring or cyclical needs tied to seasonality, contracts, or construction.

Eligibility and underwriting

Both require a for-profit business, a reasonable owner equity position, and the ability to repay. Underwriters will review credit history, business cash flow, collateral, and owner guarantees. Documentation for CAPLines often includes seasonal schedules, contract copies, or project budgets to justify the line amount (U.S. Small Business Administration).

Interest rates and fees

Rates vary by lender, loan size, and borrower credit; SBA sets maximum allowable spreads on 7(a) loans and requires certain borrower fees. Expect lender-specific pricing, and ask potential lenders for a rate quote and an itemized fee sheet before committing.

Pros and cons

  • SBA Express: Pros — faster decisions, simpler docs; Cons — generally smaller amounts and may carry higher effective pricing than a fully underwritten 7(a).
  • CAPLines: Pros — flexibility to borrow and repay as cash needs change; Cons — more documentation, higher administrative oversight, and requires discipline to manage a revolving line.

Professional tips (from practice)

  • Prepare a concise cash-flow projection showing why you need the funds and how you’ll repay them — lenders respond better to numbers tied to a clear business event. See our guide to preparing loan financials for SBA lenders for a checklist and sample packet.
  • If timing is critical, qualify for SBA Express with one lender while you prepare CAPLines documentation in parallel—this avoids operational delays if immediate cash is needed.
  • Compare total cost (interest + fees) and not just the headline rate. Ask about prepayment penalties, renewal terms for CAPLines, and collateral requirements.

Real-world examples

  • Quick gap funding: A restaurant used an SBA Express loan to repair a refrigeration unit during peak season and avoided lost sales.
  • Seasonal inventory: A retailer accessed a Seasonal CAPLine to buy inventory ahead of holiday demand and repaid the line as sales converted to cash.

Common mistakes to avoid

  • Applying without clear supporting documents (seasonal schedules, contracts, or project budgets) — CAPLines approvals hinge on demonstrated need and repayment timing.
  • Using a CAPLine like an operating credit card; treat it as disciplined working capital tied to the stated purpose.

Frequently asked questions

  • Can I convert an SBA Express loan to a CAPLine later? Possibly, but that requires reapplication and underwriting with your lender.
  • How long does a CAPLine term last? Terms vary by subprogram and lender; some are annual lines with renewal options.

Resources and next steps

Internal reading

Disclaimer

This article is educational and not personalized financial advice. Loan terms, program limits, and SBA guidance change; speak with an SBA-approved lender or a certified small-business advisor for guidance tailored to your situation (U.S. Small Business Administration).

Sources

  • U.S. Small Business Administration: 7(a) Express and CAPLines guidance (sba.gov).