Specialty trade contractor loans: SBA rates and eligibility
All Other Specialty Trade Contractors · NAICS 238990 · Program that usually fits: 7(a)
This NAICS catch-all covers trade contractors that don't fit plumbing, electrical, roofing or the other named trades. Think fence installers, residential paving and parking lot striping crews, in-ground pool builders, building exterior power washing and sandblasting, crane rental with an operator, house movers and outdoor sign installers. Loans are mostly for trucks, equipment and working capital. Lenders focus on backlog, job margins, how receivables age, and whether the owner has run crews profitably.
Who qualifies
Contractors in these trades with the state or local license their work requires, plus insurance and, for public or commercial jobs, bonding capacity. Lenders want several years of trade experience, ideally including time as a foreman or owner. Start-ups can qualify if the owner leaves an established company with a track record. Firms that only flip houses or hold rental property are speculative or passive and do not qualify for 7(a).
Which SBA program fits
7(a) for equipment and growth
Funds trucks, skid steers, trenchers, pavers and other equipment along with working capital, usually on a 10-year term. It also works for buying an established contracting company.
SBA Express and CAPLines
Express covers smaller equipment needs under $500,000 quickly. The SBA's CAPLines program offers lines of credit tied to specific contracts, which helps contractors cover labor and materials before the customer pays.
504 for a yard or shop
Buying a building with a fenced yard for materials and equipment storage fits a 504 loan, with a long fixed rate and about 10% down.
What borrowers use the money for
- Trucks, trailers and heavy equipment
- Working capital for payroll and materials on large jobs
- Buying an established contracting business
- A shop, office and equipment yard
- Refinancing high-rate equipment loans
Typical loan amounts, down payment and terms
Specialty contractor loans usually range from $75,000 to $750,000. A company buyout or a yard purchase can push higher. Start-ups and acquisitions need at least 10% equity, and lenders often want more for new firms. Equipment and working capital loans run up to 10 years. Real estate runs up to 25 years under 7(a) or through a 504 loan.
What lenders look at for a specialty trade contractor
Lenders ask for a work-in-progress schedule and accounts receivable aging, because contractors often look profitable on paper while cash is tied up in retainage and slow-paying general contractors. They compare bid margins to actual job results and check whether a few customers make up most of the revenue. Seasonality matters for paving, fencing and pool work in colder states. Expect questions about licenses, insurance claims, bonding history and the condition of the equipment.
Example: a $250,000 loan
At today's maximum variable 7(a) rate of 13.00% over 10 years, the payment would be about $3,733 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
Related industries
SBA lenders active nationwide
Questions about specialty trade contractors loans
What businesses fall under All Other Specialty Trade Contractors?
NAICS 238990 covers trade contractors not classified elsewhere, such as fence installation, residential driveway paving and parking lot striping, in-ground swimming pool construction, building exterior cleaning and sandblasting, crane rental with an operator, house moving and outdoor sign installation.
Can a fence or paving contractor get an SBA loan?
Yes. Fence, paving and similar contractors are eligible for 7(a), Express and microloans. The most common uses are trucks and equipment, working capital to carry payroll between jobs, and buying an existing company with a customer base.
Can I use an SBA loan for contractor working capital?
Yes. A 7(a) term loan can include working capital, and the SBA's CAPLines program offers revolving lines tied to contracts or receivables. Lenders will want a backlog report and receivables aging before sizing a line.
Does an SBA loan help with bonding?
Not directly, but the SBA runs a separate Surety Bond Guarantee program that helps small contractors get bid and performance bonds. Stronger working capital from a 7(a) loan can also improve the balance sheet that sureties review.
How much down payment does a contractor need for an SBA loan?
Expansion loans for an established contractor may need little or no down payment. Start-ups and business purchases need at least 10% equity under current SBA rules, and many lenders ask for more when the company is new.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.