The SBA is unveiling new credit lines of up to $5 million to fund small businesses

The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC.

The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency’s existing products, Guzman said in a phone interview.

“An ongoing challenge for small businesses who are trying to go after that contract, perhaps to help us rebuild infrastructure … or a manufacturing facility that’s trying to expand its orders, is being able to have working capital to deliver against that,” Guzman said.

The project is part of the SBA’s efforts to broaden its flagship lending program for American small businesses. Through its 7(a) loan program, the SBA provides guaranties to lenders to encourage them to extend loans to small business owners.

Source: REUTER