Scheduled Freight Air Transportation

481112

Northeast Bank (ME)

Northeast Bank is a Maine-based Community Bank and national Commercial Real Estate lender providing unmatched customer service and financial solutions to achieve your financial goals.

Average SBA Loan Rate over Prime (Prime is 7%): 3.22

Change of Ownership

Existing or more than 2 years old

Loan Funds will Open Business

Grasshopper Bank National Association (NY)

Average SBA Loan Rate over Prime (Prime is 7%): 3.19

Change of Ownership

Existing or more than 2 years old

Fixed Rates

SBA Loans for Scheduled Freight Air Transportation (NAICS 481112): Financing Cargo Aviation Businesses

Introduction

Scheduled freight air transportation (NAICS 481112) covers businesses that move cargo and packages on regular flight schedules. These operators serve as a vital part of global supply chains, transporting goods such as e-commerce shipments, pharmaceuticals, perishables, and industrial products with speed and reliability.

While demand for air freight continues to rise, operators in this category face high costs and tight margins. Aircraft expenses, maintenance, insurance, and compliance with FAA regulations make financing difficult. Traditional banks are often hesitant to lend because of industry volatility and high capital requirements. That’s where SBA Loans for Scheduled Freight Air Transportation (481112) provide a much-needed solution, offering affordable, government-backed financing to support growth and operational stability.

Industry Overview: NAICS 481112

NAICS 481112 – Scheduled Freight Air Transportation covers carriers that provide regularly scheduled cargo services domestically and internationally. These operators run dedicated cargo flights and may also move freight in combination with passenger airlines through belly cargo agreements.

This industry supports e-commerce giants, medical suppliers, manufacturers, and just-in-time logistics providers. Growth in global trade and online retail ensures steady demand. However, success requires navigating high infrastructure costs, fluctuating fuel prices, and competitive pressures from integrated carriers.

Common Financing Challenges in Air Freight

Based on insights from aviation industry forums, Reddit logistics discussions, and Quora Q&As, cargo carriers face these financial pain points:

Aircraft Acquisition and Leasing – Purchasing or leasing freighters requires millions in capital investment.
Fuel Price Volatility – Rapid swings in global fuel markets create uncertainty in cash flow.
Maintenance & FAA Compliance – Regular inspections, certifications, and safety upgrades require ongoing capital.
Insurance & Security – High-value cargo demands significant liability and cargo insurance coverage.
Bank Financing Hesitation – Traditional lenders often avoid aviation businesses due to global competition and cyclical demand.

How SBA Loans Help Scheduled Freight Air Transportation (481112)

SBA loans provide accessible capital with flexible repayment terms, helping freight carriers stabilize finances and expand. Here’s how SBA programs apply to this industry:

SBA 7(a) Loan

Best for: Working capital, refinancing debt, ground handling equipment, and crew expenses.
Loan size: Up to $5 million.
Why it helps: Flexible funds for day-to-day operations, cargo handling systems, or tech upgrades.

SBA 504 Loan

Best for: Real estate, hangars, and infrastructure projects.
Loan size: Up to $5.5 million.
Why it helps: Long-term, fixed-rate financing for expanding maintenance bases or building logistics hubs.

SBA Microloans

Best for: Small cargo service providers or startups in the freight supply chain.
Loan size: Up to $50,000.
Why it helps: Covers smaller expenses such as equipment, software, or short-term working capital.

SBA Disaster Loans

Best for: Businesses affected by global disruptions, natural disasters, or damaged facilities.
Loan size: Up to $2 million.
Why it helps: Provides recovery funds to repair infrastructure, replace equipment, or cover lost revenue.

Step-by-Step Guide to Getting an SBA Loan

Confirm Eligibility – Ensure your business meets SBA size standards, operates legally in the U.S., and demonstrates repayment ability. Most lenders expect a credit score of 650–680+.
Prepare Documentation – Collect tax returns, cargo contracts, maintenance logs, and financial projections.
Find an SBA-Approved Lender – Work with lenders familiar with aviation and freight operations.
Submit Application – Highlight long-term cargo agreements, e-commerce growth, and compliance readiness.
Approval & Funding – SBA loans usually close in 30–90 days, providing stable access to working capital or expansion funds.

FAQ: SBA Loans for Scheduled Freight Air Transportation (NAICS 481112)

Why do banks hesitate to fund air freight carriers?

Because of high capital requirements, fuel volatility, and global competition, banks often consider cargo aviation risky. SBA guarantees reduce risk and increase loan approvals.

Can SBA loans finance aircraft purchases?

SBA loans cannot directly finance large aircraft purchases but can cover related infrastructure, equipment, and working capital. Many operators use SBA 504 loans for hangars and support facilities.

What repayment terms are available?

Real estate: Up to 25 years
Equipment: Up to 10 years
Working capital: Up to 7 years

Are small freight operators eligible for SBA loans?

Yes. SBA 7(a) and Microloans can support smaller air cargo operators and ground support companies with payroll, software, and equipment financing.

Can SBA loans help with FAA compliance?

Absolutely. SBA funds can be used for safety certifications, crew training, and compliance-driven upgrades.

How long does SBA loan approval take?

Most SBA loans are approved within 30–90 days, though SBA-preferred lenders often process applications faster.

Final Thoughts

SBA Loans for Scheduled Freight Air Transportation (NAICS 481112) provide affordable financing for a capital-intensive, high-demand industry. By offering government-backed guarantees, flexible repayment terms, and support for working capital and infrastructure, SBA loans help freight carriers compete globally and maintain financial stability.

Whether your business needs funding for ground equipment, logistics facilities, or operational cash flow, SBA financing can help. Connect with an SBA-approved lender today to explore your options for financing scheduled freight air transportation.

Filters

Featured