Top Banks for SBA Plumbing & HVAC Loans

Last update: Aug 28, 2022

 

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Plumbing and HVAC companies have excelled in recent years. During the building boom, builders have had difficulty finding enough plumbing and HVAC companies and professionals to meet their demand. There has been more than enough business to go around.

Though home sales have cooled off a bit, there is still plenty of demand for plumbing and HVAC pros. Remodeling is extremely popular because many homeowners have pulled their homes off the market and have chosen to remodel rather than sell. Many of these remodeling projects involve plumbing and HVAC work.

An SBA loan can help get your plumbing and HVAC business off the ground. It can be used to purchase a vehicle, buy equipment and supplies, refinance debt, or even purchase a competitor’s plumbing and HVAC company.

 

Benefits of owning a plumbing and HVAC company

The biggest benefit of owning a plumbing and HVAC company is the independence. Many people who own a plumbing and HVAC company learned the business by working for a larger local or national plumbing and HVAC company. They saw they could earn more by being independent, calling their own shots, and building their own business.

The earnings for a plumbing and HVAC professional typically range between $50,000 and $65,000 per year, with the top 25% earning over $75,000. In addition to great pay, many plumbing and HVAC professionals use their companies to pay for benefits, like health, life, disability insurance, and other perks.

 

How to obtain financing to open, expand, or buy a plumbing and HVAC company

If you’re looking for plumbing and HVAC company financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the funding you need to set up your business.

The SBA is a government agency that doesn’t lend you the money directly. Instead, it guarantees a significant portion of your loan. That lowers the risk profile for SBA’s lending partners, which include conventional banks and financial institutions, so they’re more willing to approve loan requests.

You also must put significantly less cash or equity down to qualify with an SBA loan. And, with an SBA loan, no covenants or collateral is required.

The most common SBA plumbing and HVAC loans include the SBA 7(a) and Express loans.

 

SBA 7(a) loan for starting or buying a plumbing and HVAC company

The 7(a) is the preferred SBA loan for plumbing and HVAC professionals. You can use the funds made available through this program to purchase property, expand your office, open a new office, or even purchase a competitor’s company.

If you own an existing plumbing and HVAC company and want to buy out a partner, you can utilize the funds from an SBA 7(a) loan for that purpose.

The maximum SBA loan for a plumbing and HVAC company is $5 million. These term loans are generally repaid with monthly payments that include interest.

The payment stays the same for fixed-rate loans since the interest rate is locked in. However, for variable rate loans, it’s up to the lender to request a different payment amount if the interest rate changes.

 

SBA Express Loans for plumbing and HVAC companies

SBA Express Loans are a part of the agency’s 7(a) loan program. Up to $500,000 can be borrowed under an Express loan. The approval times are typically much faster for these loans.

Express loans over $25,000 have a collateral requirement. The SBA usually responds to Express loan applications within 36 hours.

The lenders ultimately make all eligibility and credit decisions. The market prime rate plus 4.5-6% interest is applied with repayment terms of up to 10 years.

 

How to apply for an SBA plumbing and HVAC loan

 Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced in handling applications for plumbing and HVAC companies, so they will diligently pursue your opportunity.

There are countless SBA approved lenders that are ready to offer you a plumbing and HVAC SBA loan. These are just some of the top lenders:

RankBankCityState# of LoansAvg Loan $Avg Interest
1U.S. BankCincinnatiOH170$122,2736.7%
2The Huntington National BankColumbusOH132$153,9535.5%
3Live OakWilmingtonNC79$943,6465.9%
4TD BankWilmingtonDE64$213,3727.3%
5M&TBuffaloNY42$358,7077.0%
6United Midwest Savings BankDe GraffOH36$148,6116.1%
7Wells FargoSioux FallsSD32$337,6387.2%
8JPMorgan Chase BankColumbusOH30$214,1376.9%
9BancorpSouth BankTupeloMS23$302,0395.7%
10PNC BankWilmingtonDE21$386,3247.3%

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