SBA Loans To Buy A Specialty Contractor
In FY2026, SBA lenders made 149 loans totaling $217 million to buy existing specialty trade contractors, an average of $1.5M per acquisition. Buy a specialty contractor with as little as 10% down. We take your deal to the SBA lenders that fit, from our network of 50+, and it costs you nothing.
Based on SBA 7(a) data through September 30, 2026. Acquisition loans are SBA 7(a) loans to businesses recorded as a change of ownership.
The Specialty Contractor Acquisition Market
HVAC, electrical, roofing, plumbing and other trade contractors are some of the most sought after acquisitions. Demand is steady, service work repeats, and owners near retirement are selling. Lenders look at the mix of service and project work, the license holder, and the crew.
This group covers specialty trades such as pools, gutters, fencing, waterproofing and exterior restoration. It is one of the most active acquisition groups in SBA data.
Acquisitions made up 38.1% of all SBA 7(a) dollars lent to specialty trade contractors in FY2026, compared with 27.4% across all industries. Buying an existing business is one of the main reasons owners in this industry use SBA loans, so lenders here see a steady flow of acquisition files. The average acquisition loan was $1.5M, about 17% above the $1.2M average for business acquisitions nationally. Across every purpose, lenders made 931 SBA 7(a) loans for $569 million in the industry, with an average loan of $611K and a median of $226K.
23% of those loans went to startups or businesses under two years old and 10% to franchises. The most financed franchise brands were Stand Strong Fencing, Top Rail Fence and Superior Fence & Rail. By dollars, Florida, California and Texas led the industry. Loan count was down 26% from FY2025, partly because FY2026 had no October 2025 approvals during the federal shutdown, so it covers about 11 months. Specialty trade contractors rank #7 of the 77 industries in our buy a business by industry guide by number of acquisition loans.
Based on SBA 7(a) data through September 30, 2026.
SBA Loans In This Industry By Size
All SBA 7(a) loans to specialty trade contractors, FY2026.
What It Costs To Buy A Specialty Contractor
There is no single price for a specialty contractor. The loan follows the cash flow. The most common SBA loan size in this industry was under $150K, while the most dollars went to loans of $2M to $5M. Acquisition loans ran larger than the industry average of $611K because they finance goodwill as well as equipment, inventory and working capital.
At the industry’s average acquisition loan of $1.5M, and a loan covering 90% of the project, the typical total project is about $1.6M, which includes the purchase price, working capital and closing costs. 82 loans in the industry, 50% of the dollars, were between $2 million and $5 million.
What you can borrow is set by earnings, not the asking price. SBA requires the business’s cash flow to cover all debt payments at least 1.25 times for an acquisition, measured on historical results. An independent business valuation must support the price on purchases above $350,000; if the price is higher than the valuation, the gap is filled with more buyer cash or a seller note on full standby.
Larger deals carry extra steps. When the Business Purchase Price, not counting real estate, is $3 million or more, SBA requires a Quality of Earnings report. The SBA 7(a) loan tops out at $5 million, and bigger purchases pair it with a conventional loan in a pari passu structure.
How Much You Need Down To Buy A Specialty Contractor
SBA requires a Down Payment of at least 10% of the total project cost on the purchase of a business, and the lender cannot reduce or waive it. You do not have to bring all of it in cash.
Up To Half From The Seller
A seller note can count for up to half of the Down Payment if it is on full standby, with no principal or interest payments for the life of the SBA loan. That means as little as 5% from you.
Your Savings, Gifts Or Retirement Funds
Cash that is not borrowed counts, including gifts and money from retirement accounts. Many of our buyers use a retirement funds structure.
Investors
Minority investors can fund part of the Down Payment. Anyone who owns 20% or more of the buyer personally guarantees the loan.
Example: A Specialty Contractor At The Industry Average
| Total project (price, working capital, closing costs) | $1,616,000 |
| Down Payment (10%) | $162,000 |
| From the seller (note on full standby, max half) | Up to $81,000 |
| From you (cash, gifts, retirement funds, investors) | From $81,000 |
| SBA loan | About $1,454,000 |
Built from the $1.5M average acquisition loan for specialty trade contractors in FY2026. Based on SBA 7(a) data through September 30, 2026. Illustration only; your lender sets the final structure, and some lenders ask for more than 10%.
Get A Pre-Qualification Letter Before You Make An Offer
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What Lenders Look For In Specialty Trade Contractors
This group covers specialty trades such as pools, gutters, fencing, waterproofing and exterior restoration. It is one of the most active acquisition groups in SBA data. Beyond the industry specifics, every SBA acquisition is judged on the same core questions.
Service And Maintenance Revenue
Maintenance agreements and repeat service calls make cash flow steadier than new construction work. Lenders like a healthy share.
The License Holder
Trade licenses are often held by the owner personally. Lenders confirm who will hold or qualify the license after closing.
Customer Concentration
Work for one general contractor or builder can be a large share of revenue. Spread across many customers reads better.
Job Costing And Backlog
Clean job costing and signed backlog show margins hold and work continues after the sale.
Trucks, Tools And Crew
Vehicles, equipment and technicians who stay are the operating base of the business.
Cash Flow That Covers The Loan
SBA sets the minimum at 1.25 times the debt payments for an acquisition, using the last fiscal year or the average of the last two. Projections can be reviewed but cannot be relied on to meet it.
Lenders also look at you: management experience that fits the business, personal credit, and current taxes and debts. Owners of 20% or more of the buyer personally guarantee the loan.
What To Check Before You Buy A Specialty Contractor
Due diligence protects your Down Payment and speeds up underwriting, because lenders ask for most of this anyway. Start these items as soon as your letter of intent is signed.
How Specialty Contractor Acquisitions Are Structured
Every SBA acquisition follows SOP 50 10 8.1, the SBA rulebook in effect for applications from October 1, 2026. Within those rules, the structure is built around the business’s cash flow, the seller’s goals and how much cash you want to keep.
10% Down, Part From The Seller
Most specialty contractor deals combine buyer cash with a seller note. A seller note on full standby counts for up to half of the 10% Down Payment; a note that is paid during the loan must fit the cash flow alongside the SBA payment.
10-Year Term, 25 For Real Estate
The business portion repays over up to 10 years with no balloon. Real estate bought with the business can run up to 25 years, in a blended loan or a separate one.
Line Of Credit For Jobs
Contractors carry materials and receivables between billing cycles. Many buyers close with an SBA Express or other line of credit alongside the acquisition loan.
Working Capital Line
Many buyers add an SBA Express or other line of credit at closing, so the business has cash for payroll, inventory and receivables from the first day.
Quality Of Earnings At $3M
When the Business Purchase Price, not counting real estate, is $3 million or more, the lender needs an independent Quality of Earnings report in addition to the business valuation.
Above $5M: Pari Passu
The SBA 7(a) loan is capped at $5 million. Larger acquisitions pair it with a conventional loan that shares the collateral equally, with the same 10% Down Payment on the total project.
The seller cannot stay on as an owner or employee, but can consult for up to 24 months to hand over customers, staff and know-how.
Recent Deals We Closed In This Industry
Real loans GoSBA placed. Borrower and lender names are kept private. GoSBA funded $320M across 126 loans in 2025, working with 50+ lenders.
Fiberglass Pool Installation Company
5.75% down + 10% seller note on full standby
Exterior Restoration Contractor
10% down + $500K seller note on full standby + $200K SBA Express line; includes the owner-occupied building
Aluminum Structures Contractor
Investor-backed 5% down + 5% seller note on full standby + SBA Express line of credit
Top SBA Lenders For Specialty Contractor Acquisitions
Among the 15 largest SBA lenders to specialty trade contractors by dollars in FY2026, these made the most acquisition loans. The best lender for you depends on deal size, your experience and the structure, which is why we take each deal to the lenders that fit.
| Lender | Headquarters | Acquisition Loans | All Loans In Industry |
|---|---|---|---|
| The Huntington National Bank | Columbus, OH | 46 | 97 |
| Live Oak Banking Company | Wilmington, NC | 15 | 32 |
| First Internet Bank of Indiana | Fishers, IN | 8 | 10 |
| Pathward | Sioux Falls, SD | 4 | 11 |
| Northwest Bank | Boise, ID | 3 | 8 |
| Old National Bank | Evansville, IN | 3 | 13 |
| Byline Bank | Chicago, IL | 3 | 5 |
| City National Bank of Florida | Coral Gables, FL | 3 | 3 |
Based on SBA 7(a) data through September 30, 2026. See the full ranking of SBA lenders for specialty trade contractors
How It Works With GoSBA
One team from pre-qualification to closing. You never pay us; the lender does, after closing.
Get Pre-Qualified
Request a pre-qualification letter so sellers and brokers take your offer seriously. It takes a few minutes.
Send Us The Deal
Once you have a business in mind, share the listing or letter of intent and the seller’s financials.
Lenders Compete
We package the deal and take it to the SBA lenders that fit, from our network of 50+. You choose the best offer.
Close With Us
We handle lender questions, third party reports and the closing checklist until the loan funds.
Documents You Will Need
Lenders ask for the same core package on every acquisition, plus a few items specific to specialty trade contractors. We help you gather anything missing and send it to lenders in one clean package.
- Signed letter of intent or purchase agreement
- The business’s last 3 years of tax returns
- Year-to-date profit and loss statement and balance sheet
- Trade licenses and the qualifier’s details
- Revenue split by service and project work
- Work in progress or backlog schedule
- Your last 3 years of personal tax returns
- Personal financial statement and resume
- Proof of your Down Payment funds
What Buyers Say
Without Ishan’s guidance, persistence, and expertise, I do not believe I would have closed my deal.
Ishan and the folks at GoSBA were instrumental in making our small business acquisition dreams a reality!
Frequently Asked Questions
How much do I need down to buy a specialty contractor?
At least 10% of the total project cost, and SBA does not allow the lender to waive it on a business purchase. Up to half can be a seller note on full standby. At the industry’s average acquisition loan of $1.5M, that is a Down Payment of about $162K, with as little as $81K from you.
How big an SBA loan can I get to buy a specialty contractor?
An SBA 7(a) loan goes up to $5 million, and larger deals add a conventional loan in a pari passu structure. In FY2026 lenders made 149 acquisition loans to specialty trade contractors, averaging $1.5M. Your amount is set by the business’s cash flow and an independent valuation.
What if the seller holds the contractor license?
Plan for it early. You, a licensed employee or a new hire can become the qualifier, depending on state rules. Lenders want that settled before closing because the business cannot operate without the license.
Can the seller stay on after I buy a specialty contractor?
Not as an owner or employee. The seller can work as a consultant for up to 24 months in total to transition customers, staff and know-how, and often carries part of the price as a seller note.
Which lenders finance specialty contractor acquisitions?
In FY2026, The Huntington National Bank, Live Oak Banking Company and First Internet Bank of Indiana were among the most active acquisition lenders in this industry. The right lender depends on the size of the deal, your experience and the structure. We take your deal to the lenders that fit from our network of 50+.
What does GoSBA cost?
Nothing. We are paid by the lender after your loan closes, not by you.
Buy A Business In A Related Industry
Keep reading: SBA Business Acquisition Loans · SBA Pari Passu Loans · Buying A Business Guide · Best SBA Lenders For Specialty Trade Contractors · Closed Deals · Pre-Qualification Letter · All Industries
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