SBA Loans Impact on Law Firms
Navigating New Financing Options for Law Firms with MCAs
Understanding the SBA Policy Change
The Small Business Administration (SBA) has announced starting June 1, 2025, SBA loans can no longer be used to refinance Merchant Cash Advance (MCA) debt. This regulatory shift means law firms utilizing or considering MCAs may need to alternative funding solutions.
What This Means for Law Firms with MCAs
This change means law firms will face more limited options in refinancing existing MCA debt, which is often characterized by high costs, short repayment terms, and frequent withdrawals.
Cartiga: Tailored Financing for Law Firms
Cartiga offers funding solutions designed to address the specific needs of law firms. We do not have restrictions against refinancing MCA loans and unlike MCAs, Cartiga Capital provides:
- Flexible repayment aligned with case resolutions.
- Recognition of case portfolio value.
- Lower costs than MCAs.
- No disruptive daily or weekly withdrawals.
This information does not constitute legal advice, and should not be relied upon as legal advice.
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