SBA’s working capital pilot programme reaches US$150m

The US Small Business Administration (SBA) has announced that its 7(a) Working Capital Pilot (WCP) Programme has facilitated more than US$150m in new lending to support small manufacturers and other eligible businesses since the program’s inception. According to the SBA, more than US$125m of that amount was approved since January 2025, reflecting strong recent demand and use of the pilot initiative.

The SBA highlighted that small manufacturers, which represent roughly 98 per cent of all US manufacturing firms, have been among the primary beneficiaries of the WCP. The agency said the program helps companies meet working capital needs necessary for expansion, supply chain resilience and job creation across the manufacturing sector.

The WCP complements the SBA’s traditional 7(a) and 504 loan programs by offering flexible credit lines designed to help small businesses manage short-term financing needs. Under the WCP, borrowers can access financing structured in two primary ways:

• Asset‑Based WCP loans, which allow small businesses to borrow against eligible assets such as inventory and accounts receivable to procure inventory, cover operating expenses and offer competitive sales terms.

• Transaction‑Based WCP loans, which enable businesses to fund specific projects or orders and can provide working capital early in the sales cycle, including financing up to 100  per cent of direct project costs.

The SBA also noted that the pilot program’s design supports financing for both domestic and international orders under a single facility, potentially helping manufacturers expand into new markets.

Officials said the WCP was developed with an innovative annual guarantee fee structure to offer small businesses and lenders more flexibility in structuring credit lines, and to enhance accessibility within the SBA’s broader loan offerings.

Complete details on the WCP, including updates to the FY26 Programme Guide and a list of delegated lenders, are available on the SBA’s official website.