Plumbing, Heating, and Air-Conditioning Contractors

238220

TD Bank, National Association (DE)

Explore what TD Canada Trust is all about. Learn about our values, initiatives, reporting, news, careers, recent awards, and more.

Average SBA Loan Rate over Prime (Prime is 7%): 3.12

7a General

Builders Line of Credit (CAPLine)

Change of Ownership

T Bank, National Association (TX)

Average SBA Loan Rate over Prime (Prime is 7%): 2.16

7a General

Change of Ownership

Existing or more than 2 years old

Stone Bank (AR)

Stone Bank offers a full range of banking services including checking, savings and more. We also specialize in Government-Guaranteed loans. (833) 253-2265

Average SBA Loan Rate over Prime (Prime is 7%): 2.83

7a General

Existing or more than 2 years old

Fixed Rates

Stock Yards Bank & Trust Company

Are you looking for a reliable bank that puts your needs first? Look no further than Stock Yards Bank & Trust Company in Kentucky! With a long-standing commitment to exceptional customer service and innovative banking solutions, Stock Yards is here to support your financial journey.

Average SBA Loan Rate over Prime (Prime is 7%): 0.35

Change of Ownership

Contract Loan Line of Credit (CAPLine)

Existing or more than 2 years old

Stellar Bank (TX)

Stellar Bank offers business and personal banking solutions. Stellar has the expertise, resources and commitment to out-service the big banks and out-bank the small banks. We are the bank and the bankers to help your business thrive.

Average SBA Loan Rate over Prime (Prime is 7%): 1.33

Change of Ownership

Existing or more than 2 years old

Loan Funds will Open Business

Stearns Bank National Association (MN)

Stearns Bank, a full-service bank with branches in Minnesota, Florida, and Arizona, offers the friendly service of a community bank with a national presence in commercial lending, equipment financing, and SBA loans. We also have business and personal checking, market savings accounts and CDs.

Average SBA Loan Rate over Prime (Prime is 7%): 2.82

7a General

7a with WCP

Change of Ownership

Discover personalized solutions in Personal Banking and seamless services in Business Banking at Rockland Trust. Your financial journey starts here!

Average SBA Loan Rate over Prime (Prime is 7%): 0.86

Change of Ownership

Existing or more than 2 years old

Fixed Rates

SBA Loans for Plumbing, Heating, and Air-Conditioning Contractors: Financing Growth in the Trades

Introduction

Plumbing, heating, and air-conditioning contractors are essential to residential, commercial, and industrial infrastructure. Classified under NAICS 238220, these businesses keep water flowing, heating systems efficient, and cooling equipment running in homes and businesses across the country. Demand for plumbing and HVAC services is steady and growing, yet contractors face steep financial challenges—high equipment costs, labor expenses, seasonal fluctuations, and cash flow gaps due to delayed client payments.

This is where SBA Loans for Plumbing, Heating, and Air-Conditioning Contractors provide critical support. Backed by the U.S. Small Business Administration, SBA loans offer affordable financing with lower down payments, longer repayment terms, and government guarantees that reduce lender risk. These loans help contractors purchase equipment, expand service fleets, manage payroll, and grow their businesses sustainably.

In this article, we’ll explore NAICS 238220, the financial struggles plumbing and HVAC contractors face, how SBA loans provide solutions, and the most common questions business owners ask about financing.

Industry Overview: NAICS 238220

Plumbing, Heating, and Air-Conditioning Contractors (NAICS 238220) include businesses engaged in installing and servicing essential building systems. Typical services include:

Plumbing installation and repair
Heating and furnace systems
Air conditioning and ventilation installation/repair
Water heaters, boilers, and pipefitting
Emergency and maintenance services

This industry is both recession-resistant and essential. Whether it’s a leaking pipe, a broken furnace, or a failing air conditioner, customers need contractors urgently. However, growth in this sector requires significant investment in vehicles, equipment, staff, and compliance with safety regulations.

Common Pain Points in Contractor Financing

Based on Reddit’s r/Plumbing, r/HVAC, r/Contractors, and Quora discussions, contractors often highlight these financial challenges:

High Equipment Costs – Service trucks, HVAC units, plumbing tools, and diagnostic equipment require major upfront investment.
Labor Shortages – Recruiting and retaining skilled plumbers and HVAC technicians is costly and competitive.
Seasonal Revenue Swings – Demand for HVAC services peaks in summer and winter, while slower months create cash flow gaps.
Insurance & Compliance – Contractors face high liability insurance premiums and must meet safety regulations.
Delayed Payments – Contractors often wait weeks or months for commercial clients or general contractors to pay invoices.

How SBA Loans Help Plumbing and HVAC Contractors

SBA loans offer contractors flexible, affordable financing that supports stability and growth.

SBA 7(a) Loan

Best for: Working capital, payroll, equipment, or debt refinancing.
Loan size: Up to $5 million.
Why it helps: Covers day-to-day expenses, bulk equipment purchases, or fleet vehicle upgrades.

SBA 504 Loan

Best for: Real estate and large equipment investments.
Loan size: Up to $5.5 million.
Why it helps: Ideal for purchasing a warehouse, building a shop, or financing expensive HVAC machinery.

SBA Microloans

Best for: Small businesses or startups.
Loan size: Up to $50,000.
Why it helps: Great for purchasing tools, training staff, or launching local marketing campaigns.

SBA Disaster Loans

Best for: Recovery from natural disasters or emergencies.
Loan size: Up to $2 million.
Why it helps: Provides funds to repair facilities, replace equipment, or cover lost income after disruptions.

Step-by-Step Guide to Getting an SBA Loan

Check Eligibility – Must be a U.S.-based, for-profit business with a credit score of 650+.
Prepare Financial Documents – Tax returns, P&L statements, invoices, payroll records, and contracts.
Find an SBA-Approved Lender – Some lenders specialize in construction and trades financing.
Submit Application – A strong business plan with revenue projections and service demand increases approval odds.
Underwriting & Approval – SBA guarantees reduce lender risk. Expect approval timelines of 30–90 days.

FAQ: SBA Loans for Plumbing, Heating, and Air-Conditioning Contractors

Why do banks often deny loans for contractors?

Banks view plumbing and HVAC as high-risk due to seasonality, high equipment costs, and reliance on delayed payments. SBA guarantees lower lender risk, improving approval chances.

Can SBA loans cover trucks, tools, and HVAC units?

Yes. SBA 7(a) and 504 loans can finance fleet vehicles, plumbing equipment, and HVAC systems for installation and service.

What down payment is required?

SBA loans typically require 10–20% down, compared to 25–30% for conventional loans.

Are startups eligible for SBA loans?

Yes. With relevant trade experience, a solid business plan, and good credit, startups 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 fund expansion into commercial contracts?

Absolutely. Many plumbing and HVAC companies use SBA loans to hire more staff, expand fleets, and bid on larger contracts.

Final Thoughts

The Plumbing, Heating, and Air-Conditioning Contractor industry is essential, profitable, and growing—but it requires significant financial investment. SBA Loans for Contractors provide affordable, flexible financing that helps business owners purchase equipment, manage payroll, and expand operations with confidence.

Whether you’re starting a small plumbing business, growing an HVAC company, or expanding into commercial service contracts, SBA financing can give you the resources to succeed. Connect with an SBA-approved lender today and take the next step toward growth.

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