Highway, Street, and Bridge Construction
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SBA Loans for Highway, Street, and Bridge Construction: Financing Growth in Infrastructure Contracting
Introduction
Highway, street, and bridge contractors are at the forefront of building and maintaining America’s infrastructure. Classified under NAICS 237310 – Highway, Street, and Bridge Construction, this sector includes businesses that construct, repair, and upgrade roadways, highways, interchanges, and bridges. With government funding driving large-scale infrastructure projects, demand is strong. However, contractors face financial challenges such as high equipment costs, fluctuating material prices, bonding requirements, and payroll demands.
This is where SBA Loans for Infrastructure Contractors provide vital support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help contractors purchase equipment, manage cash flow, cover payroll, and expand operations to secure larger contracts.
In this article, we’ll explore NAICS 237310, the financial hurdles highway and bridge contractors face, how SBA loans provide solutions, and answers to frequently asked questions from construction business owners.
Industry Overview: NAICS 237310
Highway, Street, and Bridge Construction (NAICS 237310) includes contractors engaged in:
- Highway and road construction
- Bridge and overpass construction
- Street and roadway paving
- Repairs, resurfacing, and reconstruction
- Infrastructure upgrades for safety and traffic flow
This industry is capital-intensive and project-based, requiring significant upfront investments in labor, equipment, and materials.
Common Pain Points in Infrastructure Financing
From Reddit’s r/Construction, r/Contractors, and Quora discussions, contractors often highlight these financial struggles:
- Cash Flow Gaps – Payments are tied to project milestones or government approvals, leaving contractors to cover upfront costs.
- High Equipment Costs – Pavers, graders, cranes, and trucks require major capital investment.
- Material Price Volatility – Asphalt, concrete, and steel fluctuate in price, squeezing margins.
- Bonding & Insurance – Large-scale projects require costly surety bonds and liability insurance.
- Payroll & Skilled Labor – Recruiting and retaining construction workers adds financial pressure.
How SBA Loans Help Highway, Street, and Bridge Contractors
SBA financing provides contractors with affordable capital to manage cash flow, invest in equipment, and expand their ability to win government contracts.
SBA 7(a) Loan
- Best for: Working capital, payroll, bonding costs, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity for covering expenses before project payments are received.
SBA 504 Loan
- Best for: Heavy equipment and facility investments.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for purchasing construction yards, warehouses, or large-scale paving and grading machinery.
SBA Microloans
- Best for: Smaller or startup contractors.
- Loan size: Up to $50,000.
- Why it helps: Useful for small tools, licensing fees, or initial working capital.
SBA Disaster Loans
- Best for: Contractors affected by natural disasters or emergency project delays.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds for damaged equipment, facilities, or lost revenue.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit contracting business with good personal credit (typically 650+).
- Prepare Financial Documents – Tax returns, P&L statements, contracts, bonding history, and payroll records.
- Find an SBA-Approved Lender – Some lenders specialize in construction and infrastructure financing.
- Submit Application – Provide a business plan with project pipelines, bonding capacity, and growth projections.
- Underwriting & Approval – SBA guarantees reduce lender risk. Processing typically takes 30–90 days.
FAQ: SBA Loans for Highway, Street, and Bridge Contractors
Why do banks often deny loans to infrastructure contractors?
Banks may view contractors as high-risk due to large project cycles, material cost volatility, and bonding requirements. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance heavy equipment?
Yes. SBA 7(a) and 504 loans can fund graders, pavers, trucks, cranes, and other construction machinery.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional loans.
Are startup contractors eligible?
Yes. Entrepreneurs with construction experience and bonding capacity may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real estate/facilities: Up to 25 years
Can SBA loans help contractors secure government contracts?
Absolutely. SBA loans provide working capital and bonding support that enable contractors to bid on larger infrastructure projects.
Final Thoughts
The Highway, Street, and Bridge Construction sector is essential to America’s infrastructure but faces high financial barriers tied to equipment, labor, and project timelines. SBA Loans for Infrastructure Contractors provide affordable, flexible financing to stabilize cash flow, purchase machinery, and grow capacity to meet the nation’s construction demands.
Whether you’re a small road contractor or a firm scaling to handle bridge and highway projects, SBA financing can provide the resources to succeed. Connect with an SBA-approved lender today and explore your funding options in infrastructure construction.
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