SBA 7(a) Working Capital Pilot (WCP)

In a tightening liquidity environment, enterprise owners are aggressively seeking alternatives to stacked short-term debt and restrictive MCAs. The SBA’s new Working Capital Pilot (WCP) represents the definitive exit strategy for sophisticated B2B distributors, manufacturers, and large-scale retailers trying to uncouple from toxic daily payment draws.

Program Highlights & Structure

• ★ **Scale:** Access monitored lines of credit up to $5,000,000.
• ★ **Flexibility:** Funds are deployed as either Asset-Based Lending (against inventory and accounts receivable) or Transaction-Based (project/order financing).
• ★ **Pricing:** Highly competitive prime-plus interest rates compared to traditional MCA factor rates of 1.30 or higher.

The Ultimate MCA Exit Strategy

The WCP specifically targets companies currently utilizing Merchant Cash Advances. A $200,000 MCA carrying a 1.40 factor rate over 6 months demands roughly $280,000 in crippling daily payback shock. By shifting that debt into an SBA 7(a) WCP, the business instantly recaptures massive monthly liquidity, allowing those funds to be redirected into marketing, talent, and operational expansion rather than debt maintenance.