SBA Loans for HVAC Companies
In the United States, the heating and cooling (HVAC) industry generates approximately $93 billion in revenue each year, and employs more than 50,000 workers across the country. If you own or operate an HVAC business and you need funding to maintain or grow your firm, getting an SBA loan could be a great solution.
How HVAC Companies Can Utilize SBA 7(a) Financing
Guaranteeing more than $25 billion in loans each year, the Small Business Administration’s SBA 7(a) program helps thousands of small businesses across the country expand their operations. To do so, it provides working capital and equipment loans with up to 10-year loan terms, as well as commercial real estate loans with up to 25-year terms. The 7(a) loan can also fund commercial lines of credit with up to 7-year terms.
HVAC firms commonly use SBA 7(a) loans for:
Purchasing HVAC equipment: HVAC equipment can be one of the most expensive parts of running a heating and cooling firm, and if you want to ensure that your business stays ahead of the competition, you need to make sure you have the best equipment out there. Fortunately, the 7(a) loan offers 10-year equipment loan terms, making it a great way to finance the equipment you need.
Growing your HVAC business: Whether you want to build a new headquarters or simply renovate your current building, SBA 7(a) loans for commercial real estate can help you get the job done.
Refinancing eligible business debt: Business debt can be a serious drag on your cash flow— however, if it meets the SBA eligibility requirements, you may be able to use an SBA 7(a) loan to refinance it. In order to be eligible, the debt must be offered to the borrower on unreasonable terms, must have been used for business purposes, such as equipment or commercial real estate.
Working capital financing: Whether you’re paying your light bills or buying a new vehicle for your installation crew, keeping up with regular business expenses be a challenge for many HVAC firms— especially during the slow season.
Partner Buyouts: Getting the funds to buy out a partner can be stressful— but it doesn’t have to be, and an SBA 7(a) loan may be able to get you the money you need.
HVAC Firms Can Also Benefit From Other Forms of SBA Financing
While 7(a) loans can help many HVAC businesses thrive, some businesses may actually benefit more from one of the SBA’s other financing options. For example, businesses that need $350,000 or less fast may find that the SBA Express loan is a better fit for their needs. Or, if you’re looking for a loan to acquire commercial real estate for your business, the SBA 504 loan could be the best choice.