Support Activities for Oil and Gas Operations
213112
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SBA Loans for Oil and Gas Support Companies: Financing Growth in Energy Services
Introduction
Oil and gas support companies provide the critical services that keep exploration and production running smoothly. Classified under NAICS 213112 – Support Activities for Oil and Gas Operations, this sector includes businesses offering rig setup, cementing, well maintenance, fluid hauling, seismic surveying, and other specialized support services. While demand for energy services remains strong, companies face financial challenges such as high equipment costs, payroll, regulatory compliance, and cash flow gaps caused by payment delays from major operators.
This is where SBA Loans for Oil and Gas Support Businesses can provide crucial financial stability. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help service providers purchase equipment, expand operations, maintain working capital, and strengthen their position in a competitive industry.
In this article, we’ll explore NAICS 213112, the financial hurdles oil and gas service providers face, how SBA loans provide solutions, and answers to frequently asked questions from energy entrepreneurs.
Industry Overview: NAICS 213112
Support Activities for Oil and Gas Operations (NAICS 213112) include businesses that provide:
- Rig setup and dismantling
- Cementing and casing services
- Well servicing and maintenance
- Seismic surveying and exploration support
- Fluid hauling, disposal, and related transport services
This industry is capital- and labor-intensive, requiring advanced technology, skilled workers, and compliance with environmental and safety regulations.
Common Pain Points in Oil and Gas Support Financing
From Reddit’s r/oilandgasworkers, r/energy, and Quora discussions, business owners often highlight these challenges:
- High Equipment Costs – Specialized rigs, cementing units, and fluid hauling trucks require major investment.
- Cash Flow Delays – Payment terms from large energy companies can take 60–90 days or longer.
- Labor & Training – Recruiting and retaining skilled field technicians increases payroll expenses.
- Regulatory Compliance – Safety, environmental, and state/federal rules require ongoing upgrades.
- Market Cycles – Oil and gas demand fluctuates with global markets, impacting service demand.
How SBA Loans Help Oil and Gas Support Businesses
SBA financing provides affordable, flexible capital that helps service providers stabilize cash flow, invest in equipment, and withstand market cycles.
SBA 7(a) Loan
- Best for: Working capital, payroll, insurance, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Provides liquidity for covering payroll, paying suppliers, and bridging cash flow gaps while waiting for client payments.
SBA 504 Loan
- Best for: Equipment and facility purchases.
- Loan size: Up to $5.5 million.
- Why it helps: Ideal for acquiring trucks, rigs, or upgrading maintenance yards and service facilities.
SBA Microloans
- Best for: Small or startup service providers.
- Loan size: Up to $50,000.
- Why it helps: Useful for safety gear, small equipment, or local marketing to secure contracts.
SBA Disaster Loans
- Best for: Businesses impacted by natural disasters or energy market disruptions.
- Loan size: Up to $2 million.
- Why it helps: Provides recovery funds for damaged facilities, equipment, or lost income.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit oil and gas support business with good personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, equipment purchase records, and service contracts.
- Find an SBA-Approved Lender – Some lenders specialize in industrial and energy sector financing.
- Submit Application – Provide a business plan highlighting service offerings, client base, and growth strategy.
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval generally takes 30–90 days.
FAQ: SBA Loans for Oil and Gas Support Companies
Why do banks often deny loans to oilfield service providers?
Banks may consider these businesses risky due to market volatility, high equipment costs, and long client payment terms. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance trucks and oilfield equipment?
Yes. SBA 7(a) and 504 loans can fund fluid hauling trucks, rigs, seismic equipment, and other specialized machinery.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional financing.
Are startup support service providers eligible?
Yes. Entrepreneurs with oilfield experience and contracts may qualify for SBA financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/service yards: Up to 25 years
Can SBA loans help during downturns in oil and gas markets?
Absolutely. Many service providers use SBA financing to strengthen working capital reserves and maintain staff during slow periods.
Final Thoughts
The Oil and Gas Support Services industry is essential to energy production but faces financial hurdles tied to equipment, payroll, and market cycles. SBA Loans for Oilfield Support Companies provide affordable, flexible financing to stabilize cash flow, invest in growth, and manage industry fluctuations.
Whether you operate a fluid hauling company, a rig service provider, or a seismic exploration support business, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options in oil and gas support services.
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