Line of credit for post-close liquidity

March 30, 2026

by a searcher from Stanford University - Graduate School of Business in San Francisco, CA, USA

For SBA-funded deals, is the SBA express loan the best product to get access to post-close liquidity for operating cushion? Or is it possible / more common to get a line of credit from a regular commercial bank like BofA or Wells Fargo post-close? Thank you.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

If you need a line of credit for your business or working capital post-closing, I would try to get it done with your original SBA lender. It is going to be much simpler to get it done at that time. The SBA Express line of credit, which can go up to $500,000, does not require any monitoring and has a 10-year loan term. That is going to be much more advantageous over the line of credit you would get from an alternative bank. If your SBA lender will not provide you with a line or adequate working capital in the SBA loan at closing, then you want to be sure they indicate that they will release the accounts receivable and/or inventory so you can secure a line of credit with another lender. If you need any sort of meaningful line of credit, most other lenders are going to require accounts receivable and inventory as collateral. There are some big banks out there that will do small unsecured lines of credit, but most of them want two years of operating history and many will require a deposit relationship as well. Sometimes they will not count a business you just acquired as having the operating history. I hope this information is of help. If you have additional questions, you can reach me here or directly at redacted

Reply by a professional
in Philippines

Good question. SBA Express is typically the fastest route for post-close liquidity, but I’ve seen conventional banks provide LOCs after closing depending on cash flow and performance.

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