Specialty waste services, including sewer and drain cleaning, catch-basin and storm-drain cleanout, industrial tank cleaning and other route-based services without a dedicated code, took 110 SBA 7(a) loans between October 2023 and June 2026, $45,497,000 from 57 lenders. The median loan was $150,000, level with the national $150,300, at a median rate of 9.75%, below the national 10.25%. Start-ups took 25.5% of loans and franchises 16.4%, so lenders here often underwrite the operator's experience, the equipment and the service contracts rather than years of results.
| Measure | All Other Miscellaneous Waste Management Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 110 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $75,000 – $348,875 | $50,000 – $500,000 |
| Loans of $1 million or more | 7.3% | 12.9% |
| Median rate at approval | 9.75% | 10.25% |
| Middle half of rates | 8.74% – 11% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 10 (9.1%) | 16,849 (10.4%) |
| Median acquisition loan | $322,500 | $693,000 |
| Lenders that made these loans | 57 | 1,648 |
| SBA 504 loans (real estate, equipment) | 13 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 110 (Oct 2023 – Jun 2026), from 57 lenders
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 9.75% (national 10.25%)
- Start-ups / franchises
- 25.5% / 16.4% of loans
- Fixed-rate share
- 21.8% of loans
- Acquisitions
- 10 loans (9.1%), median $322,500 at 9.75%
What sits under 562998, and what the figures show
NAICS 562998 is the residual waste-services code. It covers sewer cleaning and rodding, catch-basin and storm-drain cleanout, commercial and industrial tank cleaning, grease-trap cleaning, beach cleaning, and route-based services that fit no other code. The franchise share below shows that some franchise systems place their units here too. Septic pumping, solid-waste hauling and junk removal generally sit in neighboring codes, covered on the pages for septic services, solid waste collection and other waste collection.
| Figure | Specialty waste services | What it says |
|---|---|---|
| Loans / lenders | 110 loans from 57 lenders | A broad lender base for a small code |
| Median loan | $150,000 | Level with the national $150,300 |
| Middle half of loans | $75,000 to $348,875 | Equipment and working capital, not property |
| 90th percentile | $673,500 | Few very large loans; 8 of $1 million or more (7.3%) |
| Median rate | 9.75% (middle half 8.74% to 11%) | Half a point below the national 10.25% |
| Fixed-rate share | 21.8% | More than one loan in five at a fixed rate |
| Start-ups | 25.5% of loans | A quarter of borrowers had no operating history |
| Franchises | 16.4% of loans | One in six ran under a franchise system |
| SBA 504 | 13 projects, median $474,000 | Yards and shop buildings |
Two features stand out. Few loans are property-sized: the middle half runs from $75,000 to $348,875, the scale of equipment and working capital, and only 8 loans reached $1 million. And more than one loan in five carried a fixed rate, which suggests owners locking in the payment on equipment they expect to run for most of the loan. See fixed against variable rates.
Start-ups and franchises: underwriting without a history
A quarter of loans went to start-ups, a large share for a business that needs an expensive specialized truck before its first job. SBA lenders will finance a new specialty waste business, but the file has to stand in for the track record it lacks. For a start-up, SBA requires an equity injection of at least 10% of total project costs, and lenders commonly expect the owner to have run this kind of work before, as an employee, a manager or a technician. SBA's Form 1919 asks about management experience, and a resume that shows years on the trucks, not just in an office, is often what moves a start-up file.
Franchise borrowers bring something extra: a system with training, territory rights and, in the better systems, unit results a lender can compare against. The lender will read the franchise agreement for the territory's size and exclusivity, the fees taken off the top, and what the franchisor can do if the unit underperforms. Projections for a franchise start-up are more credible when they are built from the franchisor's disclosed unit results rather than the franchisor's marketing.
- A written plan with the first two years of monthly projections, and the assumptions behind them: jobs per week, average ticket, contract revenue.
- The owner's resume, showing direct field experience in this work.
- The source of the equity injection, documented.
- For a franchise, the franchise agreement and disclosure document.
- Quotes for the truck and equipment the loan will buy.
In a start-up file, the operator's experience does the work a track record does elsewhere. Show it in detail.
Trucks, jetters and vacuum units
The equipment in this industry is specialized and expensive, but it has a working resale market among other operators, municipalities and contractors. That makes it better collateral than the equipment in most service businesses.
| Equipment | Lender's view |
|---|---|
| Combination jetter-vacuum trucks | The core asset; strong resale if maintained; often the largest single item in the loan |
| Vacuum trucks and tankers | Good resale; lenders ask about tank condition and hours |
| Trailer-mounted and cart jetters | Moderate value; shorter useful life |
| Sewer inspection cameras and locators | Modest value; technology dates quickly |
| Pickup and service vans | Ordinary vehicle market |
| Yard, shop and wash bay | Real estate; a candidate for 504 |
SBA allows up to 10 years for equipment, or 15 if its useful life supports it. A lender will match the term to the truck's remaining life, and for a used truck that may be shorter. Some owners finance trucks separately and keep the SBA loan for working capital, goodwill or real estate; the page on equipment financing against SBA 7(a) sets out the trade-offs.
Contracts, permits and disposal
Revenue in specialty waste comes in two kinds, and lenders value them differently. Contract revenue, such as scheduled service for commercial kitchens, industrial sites, property managers or a municipality, recurs and can be counted on. Call-out revenue, emergency drain and sewer work, can be profitable but varies month to month. A file that separates the two, and shows how many contract customers renewed, is much stronger than one that reports a single revenue line.
Municipal and utility contracts need their own explanation: when they were bid, when they expire, and whether they can be terminated for convenience. A business with a large share of revenue from one public contract is exposed to the next bid; see customer concentration and debt.
Lenders also ask where the waste goes. Much of this work depends on access to a permitted disposal or treatment facility, at a price, and on the operator's own permits and manifests for hauling it. A change in disposal access or tipping costs can reshape margins. Pollution liability insurance, the business's regulatory record and any environmental claims will be asked about.
Buying a route or a company
Ten loans, 9.1% of the total, financed a change of ownership, a little below the national 10.4%. The median acquisition loan was $322,500 at 9.75%. Buyers are usually paying for a book of contract customers, trained technicians and a fleet, and the lender tests each: will the customers stay with a new owner, will the technicians, and what does the fleet need soon?
The SBA rules for purchases apply. The buyer needs an equity injection of at least 10% of total project costs; seller financing can count for up to half of it only on full standby for the life of the SBA loan. The seller may consult for up to 12 months after closing (up to 24 months under SOP 50 10 8.1 from 1 October 2026), which helps carry the customer relationships over. Buying a franchised unit adds the franchisor's approval of the buyer; see franchise resale financing. From 1 October 2026 a change of ownership must show 1.25x debt service coverage on historical results, and a lender will judge that coverage after the cost of keeping the trucks running.
Preparing a specialty waste company's file
Transparent starts from its SBA checklist: two to three years of business and personal tax returns, a P&L and balance sheet, a year-to-date P&L, a debt schedule with the notes being refinanced, and a personal financial statement for each owner of 20% or more, all of whom guarantee the loan. For this industry, add revenue split between contract and call-out work, a list of service contracts with their terms, a fleet list with age and condition, the business's permits and insurance, and for a purchase, the letter of intent and the target's latest full year of figures.
Once the documents are in, Transparent builds the full lender package in a day and places it with SBA lenders in its book that finance equipment-heavy service companies, including those comfortable with start-ups and franchises.
Common questions
- Can I get an SBA loan to start a drain or sewer cleaning business?
- Yes. Start-ups took 25.5% of SBA 7(a) loans in this code between October 2023 and June 2026. Expect to put in at least 10% of total project costs and to show direct experience in the work, with projections built from realistic job counts and pricing.
- Do lenders finance franchises in this industry?
- Yes; franchises were 16.4% of loans. The lender reads the franchise agreement for territory, fees and termination rights, and gives more weight to projections based on the franchisor's disclosed unit results.
- Should I finance my jetter-vac truck through the SBA loan or separately?
- Either works. Equipment financing is secured by the truck alone and leaves other collateral free; an SBA loan can combine the truck with working capital or a purchase on one longer term. The right choice depends on the rest of the balance sheet.
- How do lenders treat emergency call-out revenue?
- As less predictable than contract revenue. Lenders give more weight to scheduled service agreements that renew, so separate the two in your financials and show renewal history.
- What does it cost to buy a specialty waste company with an SBA loan?
- The ten acquisition loans in this period had a median of $322,500 at a median rate of 9.75%. The price depends on contract revenue, the fleet and the valuation SBA requires above certain amounts.