SBA LOANS FOR CONSTRUCTION COMPANIES.
SBA loans are one of the most underutilized financing tools for commercial subcontractors. The SBA guarantee structure allows banks to lend to businesses that wouldn't qualify for conventional financing, making SBA programs particularly useful for growing subcontractors who need working capital or equipment financing but don't yet have the financial profile for conventional bank credit.
The guarantee doesn't remove underwriting, it lowers the bank's risk on the same file. The lender still reads financial statements, tax returns, cash flow projections, and a business plan. So the work that gets an SBA loan approved is the same work that gets a conventional line approved: clean books, a current WIP, and a documented cash flow history. What changes is that with the guarantee in place, a growing contractor sitting two quarters short of conventional ratios can still get funded.
WHAT IT MEANS.
The SBA 7(a) program is the primary SBA loan program for contractors, allowing loans up to $5 million with terms up to 10 years for working capital and up to 25 years for real estate.
WHERE IT GOES WRONG.
You've been turned down for conventional financing
Conventional working capital lines and equipment loans require strong financial ratios: a current ratio above 1.5, debt service coverage above 1.25, and two or three years of clean financials. Growing subcontractors who don't yet meet those conventional thresholds get turned down. SBA guarantees reduce the bank's risk, which allows credit to businesses that conventional underwriting would decline.
You don't know which SBA program applies to you
The SBA runs multiple loan programs with different purposes, amounts, and terms. SBA 7(a) is the primary program, covering working capital, equipment, real estate, and business acquisition. SBA 504 is specifically for major fixed assets, meaning real property and large equipment. Most contractors know the SBA exists and don't know which program fits the need they have.
You think SBA loans are only for struggling businesses
SBA loans aren't distress financing. They're used by growing, profitable businesses that need capital and don't yet meet conventional bank thresholds, or that want longer terms and lower down payments than conventional financing offers. A growing $4M subcontractor who needs equipment financing and working capital is a good SBA candidate regardless of profitability.
WHICH ONE FITS WHICH NEED.
The SBA 7(a) program allows loans up to $5 million with terms up to 10 years for working capital and up to 25 years for real estate. The SBA guarantee covers 75 to 85% of the loan amount, which reduces bank risk and makes approval more accessible. Interest rates are variable, typically tied to Prime plus 2.75 to 4.75%. For subcontractors who need working capital or equipment financing and don't qualify for conventional credit, 7(a) is the primary tool.
The SBA 504 program provides long term fixed rate financing for major fixed assets, meaning real estate and heavy equipment. The typical structure is 50% bank financing, 40% SBA backed financing through a Certified Development Company, and 10% borrower down payment, with the maximum SBA portion typically $5 million. For subcontractors buying a shop, a yard, or major equipment, 504 offers lower down payments and fixed rates that conventional financing rarely matches.
SBA lenders still review financial statements, tax returns, cash flow projections, and business plans. The SBA guarantee reduces lender risk, it doesn't remove underwriting. Clean books, an accurate WIP, a documented cash flow history, and a clear business narrative improve SBA application outcomes the same way they improve conventional credit applications. SPM maintains the financial infrastructure that supports both conventional and SBA financing for every client.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing, no payroll, and no add-ons.
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
FREQUENTLY ASKED.
