The U.S. Small Business Administration (SBA) is streamlining its CAPLines lending program, with the changes becoming effective Saturday, Oct. 1.

Changes include reducing the number of lending categories and lengthening maturity dates on most loans.

The SBA will guarantee between 75 and 85 percent on loans up to $5 million. The breakdown in guarantees is 75 percent on loans of more than $150,000 and 85 percent on loans of less than $150,000. Maturity dates have been extended to 10 years from five in all categories except loans to builders, which are limited by regulation to five years.

Contract CAPLine loans can be used to finance all costs. Previously, the loans could be used to cover labor and material costs. Under the working capital category, loans have been changed to provide funds for short-term working capital and some refinancing of existing lines of credit.

An outline of the changes was presented during informal roundtable discussions with Iowa bankers who attended the Iowa Bankers Association convention Sept. 18-20 in Des Moines.

Steven Smits, of the SBA’s office of capital access, said the changes were based on input from lenders and borrowers across the country and were the result of a desire to streamline some procedures.