Security Guards and Patrol Services
561612
Wells Fargo Bank, National Association (SD)
Stone Bank (AR)
Salem Five Cents Savings Bank (MA)
Northeast Bank (ME)
Newtek Bank, National Association (FL)
SBA Loans for Security Guard and Patrol Companies: Financing Growth in Protective Services
Introduction
Security guard and patrol service companies protect people, property, and businesses by providing on-site personnel, mobile patrols, and specialized protective services. Classified under NAICS 561612 – Security Guards and Patrol Services, this sector includes private security firms, event security providers, mobile patrol companies, and corporate contract security services. While demand for security continues to rise due to crime prevention, corporate liability, and event safety, owners face financial challenges such as payroll, training, licensing, and equipment costs.
This is where SBA Loans for Security Guard Companies can help. Backed by the U.S. Small Business Administration, SBA loans provide longer repayment terms, lower down payments, and government-backed guarantees. These loans allow business owners to expand operations, purchase patrol vehicles, improve communications technology, and stabilize cash flow while competing in a service-driven industry.
In this article, we’ll explore NAICS 561612, the financial hurdles security companies face, how SBA loans provide solutions, and answers to frequently asked questions from entrepreneurs in the protective services industry.
Industry Overview: NAICS 561612
Security Guards and Patrol Services (NAICS 561612) include businesses such as:
- Private contract security firms
- Corporate and commercial property security
- Event and venue security providers
- Mobile and vehicle-based patrol services
- Specialized protection services (VIP, retail, or industrial)
This industry depends heavily on personnel, requiring strong recruitment, training, and retention strategies, alongside investments in vehicles and technology.
Common Pain Points in Security Company Financing
From Reddit’s r/smallbusiness, r/securityguards, and Quora discussions, owners often highlight these challenges:
- High Payroll Costs – Security firms are labor-intensive, with wages often accounting for the majority of expenses.
- Recruitment & Training – Licensing, background checks, and compliance training require ongoing investment.
- Equipment & Technology – Radios, body cameras, uniforms, and patrol vehicles create large upfront costs.
- Cash Flow Gaps – Contract payments from corporations or government agencies can take months.
- Insurance & Liability – Security firms face high insurance costs due to potential risks and liabilities.
How SBA Loans Help Security Guard and Patrol Companies
SBA financing provides affordable, flexible capital that helps security businesses cover payroll, invest in technology, and expand contracts.
SBA 7(a) Loan
- Best for: Working capital, payroll, uniforms, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity to cover staffing, training, and day-to-day operations while awaiting client payments.
SBA 504 Loan
- Best for: Patrol vehicles, facilities, and large equipment.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for purchasing patrol cars, expanding offices, or upgrading surveillance and communication systems.
SBA Microloans
- Best for: Startup or small security companies.
- Loan size: Up to $50,000.
- Why it helps: Useful for purchasing radios, uniforms, marketing services, or small vehicles.
SBA Disaster Loans
- Best for: Companies impacted by natural disasters or emergencies.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds for damaged facilities, lost contracts, or emergency expenses.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit security business with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, client contracts, and payroll records.
- Find an SBA-Approved Lender – Some lenders specialize in service-based and contract-heavy businesses.
- Submit Application – Provide a business plan highlighting service offerings, contracts, and compliance programs.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval generally takes 30–90 days.
FAQ: SBA Loans for Security Guard and Patrol Services
Why do banks often deny loans to security companies?
Banks may view these businesses as risky due to high payroll expenses, liability exposure, and long contract payment cycles. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance patrol vehicles and radios?
Yes. SBA 7(a) and 504 loans can fund patrol vehicles, surveillance systems, radios, and other essential security equipment.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional financing.
Are startup security guard firms eligible?
Yes. Entrepreneurs with law enforcement or security backgrounds and strong client leads may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/offices: Up to 25 years
Can SBA loans help expand government or corporate security contracts?
Absolutely. Many security companies use SBA financing to expand staff and resources for large-scale contracts.
Final Thoughts
The Security Guard and Patrol Services industry is vital for public and private safety but faces financial hurdles tied to payroll, liability, and contract cycles. SBA Loans for Security Companies provide affordable, flexible financing to stabilize operations, expand contracts, and invest in technology.
Whether you operate a small private patrol company or a larger corporate security firm, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options in the protective services sector.
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