SBA Express Loans for HVAC Firms
Right now, the HVAC industry in the U.S. generates more than $90 billion in revenue each year— and that number is estimated to increase to a staggering $130 billion by 2020. So, if you’re looking for financing to start, expand, or even refinance debt on your HVAC company, an SBA Express loan might
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesRight now, the HVAC industry in the U.S. generates more than $90 billion in revenue each year— and that number is estimated to increase to a staggering $130 billion by 2020. So, if you’re looking for financing to start, expand, or even refinance debt on your HVAC company, an SBA Express loan might be the perfect option.
5 Ways HVAC Firms Can Use SBA Express Loans
Offered in amounts of up to $350,000 and funded in as little as 30 days, SBA Express loans are one of the most flexible forms of SBA financing out there. Borrowers can use these loans for equipment, working capital, and even owner-occupied commercial real estate, making them a great option for heating and cooling businesses.
When it comes to HVAC companies, some of the most popular uses of SBA Express loans include:
Working capital: HVAC can be a seasonal business— and it doesn’t help that some clients may not pay on time. Those factors can have a serious effect on your business’s cash flow, making it difficult to pay your crew (or even just keep the lights on.) Fortunately, the SBA Express loan can provide you the working capital you need— and, with up to 10-year loan terms for working capital, you don’t have to rush to pay it all back.
Equipment purchase: High quality HVAC equipment isn’t cheap— and, if you’re like most smart business owners, you only want the best for your clients. In addition to offering 10-year loan terms for working capital, SBA Express loans also offer 10-year loan terms for equipment, making the Express loan an incredibly flexible form of small business financing.
Business debt refinancing: If your HVAC firm has business debt that’s being offered to you at rates that far exceed SBA maximums, or if you have debt that’s ballooned and is difficult to pay off, an SBA Express loan could be a great way to refinance it.
Buying out a partner: If you started your HVAC company with a business partner, and they now want to retire, move to a different industry, or move to a different location, an SBA Express loan could be a smart way to get the funds to buy them out.
HVAC business expansion: It could be new vans for your installation crew, new business software to increase your efficiency, or even a new headquarters— but whatever it is you need to expand, an SBA Express loan can finance it. =
Other Types of SBA Loans for HVAC Companies
SBA Express loans are a great option for many HVAC companies, but they’re not right for every firm. Larger businesses, which need up to $5 million in financing may find that the SBA’s flagship 7(a) loan is the best fit for their goals, while HVAC companies who want a loan exclusively for commercial real estate financing may want to look toward the SBA 504 loan, which offers incredibly low interest rates and loan amounts up to $5.5 million.
Related Questions
What are the eligibility requirements for SBA Express Loans for HVAC firms?
To be eligible for an SBA Express loan, HVAC firms must meet the following requirements:
- Be a for-profit business
- Be located in the United States
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after taxes for the past two years
- Be able to demonstrate a need for the loan proceeds
For more information, please visit the SBA Express Eligibility page.
What are the advantages of SBA Express Loans for HVAC firms?
SBA Express Loans offer many advantages for HVAC firms, including up to $350,000 in funding, loan terms of up to 10 years for working capital and equipment, and funding in as little as 30 days. These loans can be used for working capital, equipment purchase, business debt refinancing, buying out a partner, and business expansion. Source
Other types of SBA loans for HVAC companies include the SBA 7(a) loan, which offers up to $5 million in financing, and the SBA 504 loan, which offers incredibly low interest rates and loan amounts up to $5.5 million. Source Source
What are the disadvantages of SBA Express Loans for HVAC firms?
The main disadvantage of SBA Express Loans for HVAC firms is that the loan amount is limited to $350,000. This may not be enough for larger businesses that need up to $5 million in financing. Additionally, the loan terms are limited to 10 years for working capital and equipment, which may not be enough for some businesses. Finally, the interest rates may be higher than other SBA loan products, such as the SBA 7(a) loan or the SBA 504 loan.
How long does it take to get approved for an SBA Express Loan for HVAC firms?
SBA Express loans can be funded in as little as 30 days. This makes them one of the most flexible forms of SBA financing out there. For more information, you can visit www.sbaexpress.loans/blog/hvac-company-loans.
What documents are required to apply for an SBA Express Loan for HVAC firms?
To apply for an SBA Express Loan for HVAC firms, you will need to provide the following documents:
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements
- Personal financial statements
- Business license
- Business lease
- Business debt schedule
- Business debt repayment terms
- Business debt amortization schedule
- Business debt collateral
- Business debt payment history
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