SBA lenders approved 2,751 7(a) loans to specialty trade contractors in NAICS 238990 between October 2023 and June 2026, about $1.32 billion from 368 lenders. The median loan was $180,000 at a median rate of 10.25%, matching the national rate. The top of the range is unusually heavy: 12.7% of loans were $1 million or more, and 14.2% financed an acquisition, at a median of $640,000. Lenders underwrite the specific trade, the equipment behind the loan, and the stability of the contractor's customers and backlog.
| Measure | All Other Specialty Trade Contractors | All industries |
|---|---|---|
| SBA 7(a) loans approved | 2,751 | 162,355 |
| Median loan | $180,000 | $150,300 |
| Middle half of loans | $70,000 – $446,100 | $50,000 – $500,000 |
| Loans of $1 million or more | 12.7% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.5% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 391 (14.2%) | 16,849 (10.4%) |
| Median acquisition loan | $640,000 | $693,000 |
| Lenders that made these loans | 368 | 1,648 |
| SBA 504 loans (real estate, equipment) | 345 | 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
- 2,751 (Oct 2023 – Jun 2026)
- Median loan
- $180,000 (national $150,300)
- Loans of $1 million or more
- 349 (12.7%)
- Acquisitions
- 391 loans (14.2%), median $640,000
- SBA 504
- 345 loans, median $584,000
- Lenders that approved one
- 368
Who is in this code, and why lenders look past it
NAICS 238990, All Other Specialty Trade Contractors, is the code for specialty construction trades that do not have a code of their own. Among them: fence installation, paving of residential driveways and parking lots, sealcoating and parking-lot striping, swimming pool construction, concrete pumping, sign installation, rigging, and crane rental with an operator. A pool builder and a crane company share a code and very little else.
That is why an SBA lender never underwrites this code as such. It underwrites the trade: who the customers are, how the work is won and paid for, what equipment it takes, and whether the season stops it. A residential fence company that is paid on completion by homeowners and a crane operator that invoices general contractors on net terms are different credits, and a file that explains the trade in its first paragraph saves the lender from guessing.
What the figures show
From FY2024 through June 2026, 368 lenders approved 2,751 7(a) loans worth $1,323,385,400. The median loan of $180,000 is above the national $150,300, and the median rate of 10.25% is exactly the national one. The distribution is what stands out. The middle half ran from $70,000 to $446,100, but the 90th percentile was $1,362,000 and 349 loans, 12.7%, were $1 million or more. Equipment-heavy trades and acquisitions produce loans large enough to sit near the top of the SBA program.
| Figure | Specialty trade contractors (238990) | National | Reading |
|---|---|---|---|
| Median loan | $180,000 | $150,300 | Above the program median |
| Middle half | $70,000 to $446,100 | Working capital and a truck at the bottom; machines and purchases at the top | |
| 90th percentile | $1,362,000 | A heavy top end for a construction trade | |
| Median rate | 10.25% (middle half 9.5% to 11.25%) | 10.25% | Priced in line with the program |
| Acquisition share | 14.2% (391 loans) | 10.4% | Buyers are active in these trades |
| Acquisition median | $640,000 at 9.5% | Priced below the industry median rate | |
| SBA Express | 43.7% of loans | A large small-loan segment beside the big loans | |
| SBA 504 | 345 loans, median $584,000 | Yards, shops and long-life equipment |
The 504 figure deserves a second look. The industry took 345 SBA 504 loans beside its 2,751 7(a) loans, roughly one for every eight. Residential remodelers, by comparison, took 82 against 3,771. These contractors need a yard for equipment and materials, and many buy it. See SBA 7(a) vs SBA 504.
Equipment: the collateral that makes these loans larger
Most small-business borrowers have little a lender can sell if the loan fails. Many contractors in this code are different. A crane, a concrete pump, a paver or a fleet of trucks has a resale market, and an appraisal can put a value on it. That changes the lender's position: SBA does not decline a loan solely because collateral falls short, but a lender with real equipment behind the loan is more comfortable at larger sizes, and it can offer longer terms on the equipment share. See equipment appraisals: OLV and FMV.
| Use of proceeds | 7(a) maximum maturity | What the lender checks |
|---|---|---|
| Working capital | Up to 10 years | Seasonal cash needs and receivables on commercial work |
| Equipment | Up to 10 years, or 15 if its useful life supports it | Age, hours, condition and resale market |
| Owner-occupied yard or shop | Up to 25 years | Appraisal, environmental review for fuel and materials storage |
| Acquisition goodwill | Up to 10 years | Cash flow on the seller's filed returns |
SBA is not the only route for a machine purchase. Equipment lenders finance against the asset itself, often with less paperwork on the business as a whole, and 244 lenders in Transparent's book write equipment. SBA's advantage is the longer term and the ability to combine equipment, working capital and real estate in one loan. See equipment financing vs SBA 7(a) and equipment lease vs loan.
Buying a specialty contractor
391 loans financed a change of ownership, 14.2% of the industry's total against 10.4% nationally, at a median of $640,000 and a median rate of 9.5%. Specialty contractors transfer better than many trades because the value is partly in the equipment, the crews and the customer relationships with general contractors or property managers, not only in the owner.
Equipment also interacts with SBA's valuation rule. SBA requires an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan for the purchase cannot exceed the valuation. In a purchase where much of the price is appraised machinery, the goodwill that remains may be modest, and the equipment appraisal becomes as important as the business valuation. See SBA's business valuation requirement.
The other acquisition rules are SBA's standard ones: at least 10% equity for a complete change of ownership, a seller note counting for up to half of it only on full standby for the life of the loan, and no earnout. From 1 October 2026, under SOP 50 10 8.1, the purchase must show debt service coverage of 1.25x on historical results, financial due diligence is required, and a quality of earnings report is required on acquisitions of $3 million or more excluding real estate. See how SBA 7(a) finances an acquisition.
What lenders worry about in these trades
- Seasonality. Paving, pools and much outdoor work slow or stop in winter in colder states. Lenders test whether annual cash flow covers twelve monthly payments, and may look for a working capital cushion or a line. See seasonal lines of credit.
- Who pays, and when. Commercial work for general contractors comes with net terms and often retainage, money withheld until the project is finished. Receivables can be large and slow. Residential work is usually paid on completion but depends on consumer demand.
- Customer concentration. A crane or rigging company working for a handful of general contractors can have most of its revenue in a few relationships. See customer concentration and debt.
- Safety and insurance. Crane, rigging and pool work carry serious liability. Lenders ask about the insurance program and claims history because an uninsured loss can end the business.
- Licenses and certifications. Operator certifications and contractor licenses often sit with individuals; the lender will want to know they stay with the business.
Preparing the file
Use SBA's standard documents: business tax returns for 2–3 years, a P&L, balance sheet and year-to-date P&L, a debt schedule with notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. Add, for this industry, an equipment list with year, make, model, hours and any liens; an AR aging with retainage shown separately; a backlog or work-in-progress schedule; and a one-paragraph description of the trade and its customers. Existing equipment notes belong on the debt schedule with their payoff amounts.
Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and takes it to the 278 lenders in its book that write SBA 7(a) and 504, alongside equipment lenders where a machine purchase fits better outside SBA. On SBA loans the lender pays Transparent, not the borrower. See how we underwrite.
Common questions
- What kinds of contractors are in NAICS 238990?
- Specialty trades without their own code, including fence installers, residential driveway and parking-lot paving, sealcoating and striping, swimming pool builders, concrete pumping, sign installation, rigging, and crane rental with an operator. Lenders underwrite the actual trade rather than the code.
- How large are SBA loans to specialty trade contractors?
- The median 7(a) loan from October 2023 to June 2026 was $180,000, with the middle half between $70,000 and $446,100. The top end is heavy: the 90th percentile was $1,362,000 and 12.7% of loans were $1 million or more.
- Should I finance a crane or paver with an SBA loan or an equipment loan?
- It depends on what else you need. An equipment loan is secured by the machine and is often simpler. A 7(a) can run up to 10 years on equipment, or 15 if its useful life supports it, and can combine the machine with working capital or real estate in one loan.
- Does equipment in an acquisition affect SBA's valuation requirement?
- Yes. SBA requires an independent business valuation when the amount financed, less appraised real estate and equipment, exceeds $250,000. Appraised equipment reduces the portion that counts toward that threshold, so the equipment appraisal matters as much as the valuation.
- How do lenders handle a contractor that shuts down in winter?
- They test annual cash flow against twelve months of payments and look at how the business carried itself through past winters. A working capital reserve in the loan or a separate seasonal line can address the gap.