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 falling two quarters short of conventional ratios can still get funded.
Rather talk it through first? Book a 20 minute call. Nothing gets sold on this call.
Want Josh to build it with you? Cash Flow Intervention, $497 one time. A 90 minute session that fills in the 13 week forecast with your real numbers and makes the billing changes on the call.
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 offers 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. The one-time onboarding fee is right here in the table.
Built for subs doing $1M to $12M. Above $12.5M we quote.
| Last 12 months revenue | Core | Strategic | Platinum | One-time onboarding |
|---|---|---|---|---|
| Under $1M | $1,900 | $3,100 | $3,300 | $2,500 |
| $1M to $3.5M | $2,600 | $4,100 | $5,300 | $4,500 |
| $3.5M to $6.5M | $3,800 | $5,900 | $8,300 | $6,000 |
| $6.5M to $9.5M | $5,100 | $7,600 | $11,800 | $7,500 |
| $9.5M to $12.5M | $6,100 | $8,900 | $14,900 | $9,000 |
| Above $12.5M | Quoted | Quoted | Quoted | Quoted |
The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers, and it moves with your revenue band. Your first month is prorated, and your monthly engagement starts on the first of the first full month.
Just want the setup? Onboarding only is the same onboarding work with no monthly service after it, one time, at the onboarding fee plus $2,000. Start a monthly engagement later and $2,000 counts toward it. It starts at $4,500, and the price for every band is on the pricing page.
The three tier columns are the whole price. Which one fits depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.
- Online software only: QuickBooks, Sage, Viewpoint and similar. No VPN or hosted desktop.
- Not in any tier: payroll, pay applications, collections on receivables.
- Pricing valid through 2027.
CFO work. Your own bookkeeper keeps doing the books.
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 and never in a report.
Your bookkeeper still does the books.
Core, plus bookkeeping and bank reconciliations, plus job costing and WIP software set up and managed for you. Use your own online accounting software or we supply it, one price.
Every job shows its margin while it is still open.
Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.
A bookkeeper we choose does the books and reconciliations. No payroll.
Strategic, plus a controller who handles payables and receivables the way an in-house controller would. You approve every payment.
You approve, and the money side gets handled.
Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.
A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.
FREQUENTLY ASKED.
