Framing Contractors
238130
Peoples Bank (OH)
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ESL FCU (NY)
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Columbia Bank d/b/a Umpqua Bank (CA)
Celtic Bank Corporation (UT)
Cadence Bank (MS)
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SBA Loans for Framing Contractors: Financing Growth in Structural Construction Services
Introduction
Framing contractors are the backbone of the construction industry, building the structural skeleton of homes, commercial buildings, and industrial facilities. Classified under NAICS 238130 – Framing Contractors, these businesses handle wood, steel, and hybrid framing projects for residential and commercial development. While demand for construction remains strong, framing contractors face significant financial challenges: high labor costs, fluctuating lumber and steel prices, payroll demands, and project-based cash flow.
This is where SBA Loans for Framing Contractors can make a difference. Backed by the U.S. Small Business Administration, SBA loans provide affordable financing with lower down payments, longer repayment terms, and government-backed guarantees. These loans help framing contractors purchase equipment, hire skilled crews, manage working capital, and expand their business capacity.
In this article, we’ll explore NAICS 238130, the financial struggles framing contractors face, how SBA loans provide solutions, and answers to frequently asked questions from construction business owners.
Industry Overview: NAICS 238130
Framing Contractors (NAICS 238130) specialize in building the foundational structure of construction projects. Services typically include:
- Wood framing for residential homes
- Steel framing for commercial and industrial buildings
- Structural framing for additions and remodels
- Roof trusses, walls, and floor systems
- Custom framing for specialized projects
The industry is essential to construction but highly sensitive to material costs, labor shortages, and economic cycles. Contractors must balance project pipelines with cash flow to stay profitable.
Common Pain Points in Framing Contractor Financing
From Reddit’s r/Contractors, r/Construction, and Quora discussions, framing contractors often highlight these financial challenges:
- Material Price Volatility – Lumber and steel costs rise and fall, making budgeting difficult.
- Labor Costs – Recruiting and paying skilled framers adds significant payroll pressure.
- Equipment Needs – Trucks, nail guns, scaffolding, and lifts require ongoing investment.
- Cash Flow Gaps – Payments often arrive 30–90 days after project completion, creating liquidity issues.
- Project Delays – Weather, permits, or supply shortages can stall progress while overhead costs continue.
How SBA Loans Help Framing Contractors
SBA loans provide affordable, flexible financing that helps framing contractors manage operations, bid on larger projects, and grow sustainably.
SBA 7(a) Loan
- Best for: Working capital, payroll, tools, or debt refinancing.
- Loan size: Up to $5 million.
- Why it helps: Provides funds to cover materials, hire crews, and bridge cash flow gaps between projects.
SBA 504 Loan
- Best for: Real estate and major equipment purchases.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for acquiring a warehouse, office space, or investing in large equipment and vehicles.
SBA Microloans
- Best for: Small or startup contractors.
- Loan size: Up to $50,000.
- Why it helps: Perfect for purchasing tools, safety gear, or covering licensing and insurance costs.
SBA Disaster Loans
- Best for: Contractors impacted by natural disasters or unforeseen disruptions.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funding for damaged equipment, job site losses, or revenue interruptions.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit framing business with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, contracts, and payroll records.
- Find an SBA-Approved Lender – Some lenders specialize in construction and trade businesses.
- Submit Application – Provide a business plan with project pipeline, material sourcing strategies, and growth forecasts.
- Underwriting & Approval – SBA guarantees reduce lender risk. Processing usually takes 30–90 days.
FAQ: SBA Loans for Framing Contractors
Why do banks often deny loans to framing contractors?
Banks see contractors as risky due to project-based revenue, cash flow delays, and fluctuating material costs. SBA guarantees reduce this risk, making approval more likely.
Can SBA loans cover trucks, scaffolding, and framing tools?
Yes. SBA 7(a) and 504 loans can fund trucks, lifts, and professional carpentry equipment.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional loans.
Are startup framing businesses eligible?
Yes. Startups with trade experience, proper licensing, and a solid business plan can qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real estate: Up to 25 years
Can SBA loans help contractors expand into commercial projects?
Absolutely. Many framing contractors use SBA loans to bid on larger commercial or industrial projects, scale their workforce, and expand operations.
Final Thoughts
The Framing Contractors industry is essential to residential and commercial construction but requires steady financing to manage costs and grow. SBA Loans for Framing Contractors provide the affordable capital needed to purchase materials, hire labor, and expand into larger projects.
Whether you’re a small residential framer or a contractor moving into commercial builds, SBA financing can help you grow with confidence. Connect with an SBA-approved lender today and explore your funding options for success in structural construction.
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