Top Banks for Trucking SBA Loans

Last update: Aug 28, 2022

 

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If you’ve read about the ongoing supply chain problems, you’ve also seen there is a serious truck driver shortage in America, making it one of the most in-demand careers. As a truck driver and trucking company owner, you can expect to have a stable and long-lasting career.

Starting a career as a truck driver and opening a trucking business is relatively quick. Most truckers obtain their CDL license from a trucking school, which typically takes 3-4 weeks.

Many independent truckers began their careers working as drivers for large national transportation companies and ultimately ended up in business for themselves. In many cases, SBA loans have made that possible.

An SBA loan for a truck driver is not a student loan. Instead, it can be used to pay for buying your first truck, buying additional rigs as you expand, refinancing debt, or even purchasing a competitor’s trucking company.

 

Benefits of being a truck driver

The biggest benefit of being a trucker is the excellent earning potential. Many drivers earn $50,000 and up in their first year, and more experienced drivers consistently earn $75,000 or more. In addition to great pay, many use their companies to pay for benefits, like health, life, and disability insurance.

In addition, truckers get to see the country up close and personal. Many truckers consider their job to be a paid road trip – they love the open road and seeing America. Some even bring family members and pets with them on trips.

 

How to obtain financing to open, expand, or buy a trucking company

If you’re looking for trucking company financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the financing 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 trucking loans include the SBA 7(a) and Express loans.

 

SBA 7(a) loan for starting or buying a trucking company

The 7(a) is the preferred SBA loan for truckers. You can use the funds made available through this program to purchase vehicles, expand your location, open a new location, or even purchase a competitor’s company.

If you own an existing trucking 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 trucking 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 trucking 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.

If approved, the funds can be utilized for vehicles, office furniture, supplies, working capital, and real estate. 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 trucking 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 trucking companies, so they will diligently pursue your opportunity.

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

RankBankCityState# of LoansAvg Loan $Avg Interest
1The Huntington National BankColumbusOH1071$77,4305.4%
2U.S. BankCincinnatiOH232$100,8885.2%
3Wells FargoSioux FallsSD113$19,0918.9%
4TD BankWilmingtonDE41$53,0298.7%
5KeyBankClevelandOH34$366,9916.3%
6M&TBuffaloNY27$54,1267.2%
7JPMorgan Chase BankColumbusOH26$134,8888.1%
81st Source BankSouth BendIN23$48,6265.7%
9Harvest Small Business FinanceLaguna HillsCA22$1,871,0235.7%
10Enterprise Bank & TrustClaytonMO19$1,412,7895.2%

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