SBA lenders approved 130 7(a) loans to building inspection businesses from October 2023 through June 2026, $24,379,400 from 35 lenders. The median loan was $74,500, about half the national $150,300, and the median rate was 11.25% against 10.25% nationally, because small loans sit under higher SBA rate caps. Franchises took 14.6% of loans and SBA Express 39.2%. Acquisitions were 6.2% of loans but large, at a median of $708,750. Lenders decide these loans on the inspector's license and claims record, and on how dependable the referral flow is.
| Measure | Building Inspection Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 130 | 162,355 |
| Median loan | $74,500 | $150,300 |
| Middle half of loans | $35,000 – $150,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 2.3% | 12.9% |
| Median rate at approval | 11.25% | 10.25% |
| Middle half of rates | 9.75% – 12.69% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 8 (6.2%) | 16,849 (10.4%) |
| Median acquisition loan | $708,750 | $693,000 |
| Lenders that made these loans | 35 | 1,648 |
| SBA 504 loans (real estate, equipment) | 2 | 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
- 130 (Oct 2023 – Jun 2026), from 35 lenders
- Median loan
- $74,500 (national $150,300)
- Median rate at approval
- 11.25% (national 10.25%)
- Franchises / start-ups
- 14.6% / 13.1% of loans
- Acquisitions
- 8 loans (6.2%), median $708,750
- SBA Express share
- 39.2%
What 130 approvals say about the trade
Building inspection services (NAICS 541350) covers home inspectors who examine a house for a buyer before closing, commercial inspectors who prepare property condition assessments, firms that perform phase and warranty inspections for builders, and private companies that municipalities hire to do code inspection and plan review. The median loan supported 2 jobs. Most of these businesses are an owner, a truck and a report-writing system, sometimes with a scheduler and one or two more inspectors.
| Figure | Building inspection | Read against the national figures |
|---|---|---|
| Loans / total / lenders | 130 / $24,379,400 / 35 | A small SBA market, and a modest number of lenders in it |
| Median loan | $74,500 | About half the national $150,300 |
| Middle half of loans | $35,000 to $150,000 | Vehicles, equipment, software and working capital |
| 90th percentile | $305,000 | Even the large loans are small |
| Loans of $1 million or more | 3 (2.3%) | Rare; the trade's acquisitions are the obvious candidates |
| Median rate (middle half) | 11.25% (9.75% to 12.69%) | A full point above the national 10.25% |
| Fixed-rate share | 13.8% | Most loans float with the base rate |
| Median term | 120 months | The ten-year working-capital standard |
| SBA Express | 39.2% | A large share decided on the lender's own process |
| Start-ups / franchises | 13.1% / 14.6% | A trade with a real franchise channel |
| Acquisitions | 8 loans (6.2%), median $708,750 at 9.88% | Below the national 10.4% share, at almost ten times the typical loan |
| SBA 504 | 2 loans, median $574,500 | Inspection firms rarely need their own building |
Why the loans are small and the rates high
An inspection business needs little capital. The loans in the middle half, $35,000 to $150,000, buy a vehicle, a thermal imaging camera, moisture meters, a drone for roofs a ladder cannot reach, sewer-scope equipment, report software, and a few months of working capital while a new inspector builds volume. Nothing on that list holds much value at auction, so the lender's cushion is the owner's personal guarantee, which SBA requires from every owner of 20% or more.
The rate premium follows from the loan size. SBA caps variable 7(a) rates by loan amount: the base rate plus 6% from $50,001 to $250,000, against plus 3% above $350,000. A median loan of $74,500 sits in the higher band, and lenders price small loans toward the top of what SBA allows because the cost of making and servicing a loan barely falls with its size. The acquisition loans, at a median of $708,750, carried a median rate of 9.88%, below the trade's 11.25%, for the same reason in reverse. See SBA maximum interest rates and current SBA loan rates.
SBA Express accounts for 39.2% of loans. It goes up to $500,000 with a 50% guaranty and lets the lender decide on its own credit process, which suits a request for a vehicle and a camera. The trade-off is that an Express lender leans hard on personal credit and filed tax returns; see SBA 7(a) vs SBA Express.
How an underwriter reads an inspection company
Two inspection businesses with the same revenue can be very different credits, depending on who pays them and why. The underwriter's first task is to split revenue by line of work.
| Line of work | Who pays, and when | What the lender looks at |
|---|---|---|
| Pre-purchase home inspections | The home buyer, at or before the inspection | Referral sources, monthly inspection counts, and how volume held up when home sales slowed |
| Ancillary testing (radon, mold, sewer scope, wood-destroying insects) | The buyer, added to the inspection fee | Separate licenses or certifications, and the margin these add per job |
| New-construction phase and warranty inspections | Builders or homeowners, per inspection | Concentration in a few builders and their building pace |
| Commercial property condition assessments | Investors, buyers and lenders, on invoice | Receivables, report liability, and the qualifications of the people signing |
| Third-party code inspection and plan review | Municipalities, under contract | Contract term, renewal and termination rights, and slow government payment |
Residential inspection volume follows home sales, which follow mortgage rates and the season. A lender will want inspection counts by month for two or three years, which shows both the spring peak and how the business behaved in a slow market. Revenue that leans on a handful of real estate agents is a concentration risk even though the agents are not the ones paying: if two top agents change brokerages or retire, the calendar thins. Businesses that have built a direct-to-consumer channel, builder work or municipal contracts alongside agent referrals read as steadier.
Liability is the second question. An inspector who misses a failing roof or a cracked foundation can be sued by the buyer, and a pattern of claims can end a small business. Lenders ask for the errors and omissions policy, the claims history, and the pre-inspection agreement clients sign. Where the state licenses home inspectors, the license belongs to the individual, not the company, so the lender confirms it is current for every inspector on staff.
In inspection, the license, the insurance and the referral list are the business. Put all three in the file.
Franchises and start-ups
Franchises made up 14.6% of loans and start-ups 13.1%, both meaningful shares for a service trade. Inspection franchises sell a brand, report software, training and a marketing program aimed at real estate agents, which gives a lender something to underwrite when the business has no history of its own. The lender still reviews the franchise agreement for SBA eligibility, and still reads the franchisee.
A start-up must inject equity of at least 10% of total project costs. Lenders look for prior experience that transfers: years as a builder, a remodeler, a code official or an inspector employed by another firm. That record goes on the resume that supports SBA Form 1919, written as inspections performed, licenses held and relationships with agents, not a list of job titles. See also buyer industry experience requirements.
Buying an inspection firm
Only 8 loans financed a change of ownership, 6.2% of the trade's total against 10.4% nationally, at a median of $708,750 and a median rate of 9.88%. Solo practices rarely sell for anything a lender will finance: the value leaves with the inspector. The firms that do sell have several licensed inspectors, an office that books and schedules, a recognized local brand, and often builder or municipal contracts that do not depend on one person.
What the lender and the buyer both test is whether the revenue survives the seller's departure. Agent referrals often follow the seller's name. Employed inspectors need to stay, because each license walks out the door with its holder. Municipal contracts may require the city's consent to a change of control; see change-of-control consents. SBA does not let the seller stay on as an owner, officer or employee, but the seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, which is time to introduce the buyer to every agent who matters.
At a median of $708,750 most of these purchases need an independent business valuation: SBA requires one where the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan cannot exceed it. The buyer puts in at least 10% of total project costs; a seller note can supply up to half of that only if it is on full standby for the life of the loan. From 1 October 2026 a change of ownership must show 1.25x debt service coverage on historical results, and financial due diligence is required on every one.
Preparing the file
Start with the SBA list: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of any notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For an inspection business, add:
- Inspection counts and revenue by month for the last two to three years
- Revenue by line of work, and by top referral source
- The errors and omissions policy, general liability policy and claims history
- State licenses and certifications for every inspector
- Municipal or builder contracts, with term and termination provisions
- Quotes for any vehicles or equipment being financed
SBA requires debt service coverage of at least 1.15x, and 1.0x globally once the owners' personal obligations are counted; an owner-operator's salary and household debts matter as much as the business's own; see global cash flow. Transparent builds the full lender package in a day once the documents are in, and takes it to SBA lenders in its book, where 278 write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- Can a home inspector get an SBA loan?
- Yes. SBA lenders approved 130 loans to building inspection businesses in the period, at a median of $74,500. Expect to personally guarantee the loan and to show filed tax returns, a current license and an errors and omissions policy.
- Why are SBA rates higher for inspection businesses?
- Because the loans are small. SBA's rate caps are higher on smaller loans, and the trade's median loan of $74,500 falls in the band capped at the base rate plus 6%. The median rate was 11.25%, against 10.25% nationally.
- Can I use an SBA loan to buy a home inspection franchise?
- Yes: 14.6% of the trade's SBA loans went to franchises. The lender reviews the franchise agreement for eligibility and expects an equity injection of at least 10% of total project costs for a new location.
- What does a lender need to finance buying an inspection company?
- The target's latest full year of figures, the letter of intent, revenue by referral source and line of work, the licenses of every inspector who is staying, and any builder or municipal contracts. Most purchases at the trade's acquisition median of $708,750 also need an independent business valuation.
- Does a claims history hurt an inspection company's loan?
- It depends on the pattern. An occasional claim paid by insurance is part of the trade; repeated claims, a lapsed policy or an uninsured judgment are what worry lenders. Explain each claim and how it was resolved.