SBA Express Loans for Plumbing Companies
There are over 110,000 plumbing businesses in the United States, employing more than half a million workers and generating an estimated $93 billion in revenue each year. And, as any homeowner or business owner knows, having a good plumber is essential if you want to keep your pipes working and your home dry. So, if you’re looking for financing to grow your plumbing firm, refinance a business loan, or help your company through a rough patch, an SBA express loan could be a fantastic solution.
How Plumbers Can Utilize SBA Express Loans
The SBA Express program is an excellent choice for plumbers and plumbing company owners who want SBA funding fast. Unlike some other types off SBA loans, which can take several months to close, Express loans can close in between 30 and 90 days, making them a great choice for businesses that can’t wait forever for funding. Just like their more popular sibling, the SBA 7(a) loan, Express loans can be used for equipment, working capital, and commercial real estate.
Plumbers commonly use SBA Express loans for purposes including:
Buying vehicles and equipment: Purchasing equipment can be one of the most expensive costs of running a plumbing business. However, the SBA Express loan’s 10-year equipment loan terms can help take the pressure off your company’s finances while giving you the tools you need to succeed .
Buying out a partner: Going into the plumbing business with a partner or two isn’t uncommon; but partnerships don’t always last forever. And, if you want to purchase a parter’s stake in the company, an SBA Express loan could be a smart way to do it.
Working capital financing: Whether it’s keeping the lights on or making sure your workers get paid on time, having enough funds in the bank to cover daily expenses isn’t always an easy feat— but, with its 10-year working capital loans, the SBA Express program can help.
Refinancing business debt: Refinancing debt is one of the most common uses for the SBA 7(a) loan. However, the debt must currently be offered to the borrower on unreasonable terms, and needs to have been used for SBA-loan eligible business expenses, not personal purchases.
SBA Express Loans vs. Other SBA Loans
SBA Express loans are a great way to get SBA funding fast, but if your business has other needs— like achieving an incredibly low interest rate for a commercial real estate loan, or getting a smaller loan with poor credit, than they might not be the best choice. Other SBA loan options include:
SBA microloans: These loans are offered in amounts up to $50,000, and some lenders may permit borrowers with credit scores as low as 575 to apply.
SBA 504 loans: SBA 504 loans are designed exclusively for owner-occupied commercial real estate and long-term equipment financing. They offer ultra-low interest rates (around 5%), and have a maximum loan amount of $5.5 million.
SBA Community Advantage loans: These loans, which are designed to help provide financing for historically underserved populations, including women and minorities, are offered in amounts up to $250,000, mostly by non-profit lenders working in concert with the SBA.