SBA lenders approved 147 7(a) loans to fabricated structural metal manufacturers from October 2023 through June 2026, $91,359,300 from 62 lenders. The median loan was $250,000 against a national $150,300, at a median rate of 10% against 10.25% nationally. Almost none were start-ups (3.4%), SBA Express made up 40.8% of loans, and acquisitions were 16.3%, well above the national 10.4%. Lenders decide on the backlog and bid margins, the gap between progress billing and payment, the equipment's value and whether cash flow covers the payment.
| Measure | Fabricated Structural Metal Manufacturing | All industries |
|---|---|---|
| SBA 7(a) loans approved | 147 | 162,355 |
| Median loan | $250,000 | $150,300 |
| Middle half of loans | $100,000 – $557,100 | $50,000 – $500,000 |
| Loans of $1 million or more | 16.3% | 12.9% |
| Median rate at approval | 10% | 10.25% |
| Middle half of rates | 8.5% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 24 (16.3%) | 16,849 (10.4%) |
| Median acquisition loan | $900,750 | $693,000 |
| Lenders that made these loans | 62 | 1,648 |
| SBA 504 loans (real estate, equipment) | 21 | 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
- 147 (Oct 2023 – Jun 2026)
- Median loan
- $250,000 (national $150,300)
- Median rate at approval
- 10% (national 10.25%)
- SBA Express share
- 40.8% of loans
- Acquisitions
- 24 loans (16.3%), median $900,750
- SBA 504 projects
- 21, median $1,166,000
What the numbers say
Fabricated structural metal manufacturers (NAICS 332312) cut, drill, weld and paint the beams, columns, joists, stairs, railings and platforms that go into buildings, bridges and industrial plants, mostly to drawings supplied by a contractor or engineer. The 147 SBA 7(a) loans in the period came from 62 lenders and totaled $91,359,300.
| Figure | Structural metal fabricators | National |
|---|---|---|
| Median loan | $250,000 | $150,300 |
| Middle half of loans | $100,000 to $557,100 | |
| 90th percentile loan | $1,647,520 | |
| Loans of $1 million or more | 24 (16.3%) | |
| Median rate at approval | 10% (middle half 8.5% to 11.25%) | 10.25% |
| Fixed-rate share | 19% | |
| Acquisitions | 24 loans (16.3%), median $900,750 at 9.25% | 10.4% of loans |
| Start-ups | 3.4% of loans | |
| Franchises | None | |
| SBA Express | 40.8% of loans | |
| Median jobs supported | 6 |
This is a borrower population of existing shops. Start-ups were 3.4% of loans and there were no franchises. Lenders here are underwriting a track record, and the shape of the loans follows from that: a large block of small SBA Express loans at one end, and at the other, acquisitions and real estate that pushed 24 loans to $1 million or more. Nearly one loan in five was fixed-rate; a shop that bids fixed-price work may prefer a payment that does not move either.
Why SBA Express shows up so often
SBA Express loans go up to $500,000 with a 50% guaranty, and the lender makes the credit decision itself under SBA's rules. They made up 40.8% of loans here. For a fabricator, common uses are a revolving line to carry steel purchases and payroll between progress bills, a piece of equipment, or a modest refinancing. The lower guaranty means the lender keeps more of the risk, so Express approvals lean on shops with a clean history and a lender that already knows them.
Where the need is larger than Express allows, or the shop wants the higher guaranty, a standard 7(a) loan or an SBA CAPLines facility built around contracts is the alternative. See SBA 7(a) vs SBA Express and SBA CAPLines.
Job-by-job cash flow: bids, progress bills and retainage
A fabricator buys steel, pays its shop and erection crews, and bills as the job progresses. The contractor pays on its own schedule, often after it has been paid by the owner, and holds back retainage until the project is finished. The fabricator is lending to the job for months. A lender's questions follow that cycle:
- Backlog. Signed work not yet built, by job and by customer, and how it compares with the same point last year.
- Bid margins and fade. Whether jobs finish at the margin they were bid at. A work-in-progress schedule that shows margins falling as jobs complete is the first thing an experienced lender looks for.
- Steel price exposure. A fixed-price bid priced months before the steel is bought carries the risk of a price rise in between. Lenders ask whether contracts have escalation clauses and how the shop buys material.
- Customer concentration. A few general contractors often provide most of the work. See customer concentration and debt.
- Bonding. Public and larger private jobs require performance and payment bonds. The surety's indemnity agreement and its view of working capital sit alongside the lender's, and a lender will want to see the bonding line and its conditions.
Construction receivables are also harder to borrow against than ordinary trade receivables. Asset-based lenders typically advance 80% to 90% of eligible receivables, but much of a fabricator's receivables may not be eligible.
| Receivable | Typical borrowing-base treatment | Why |
|---|---|---|
| Invoice for delivered, accepted work | Usually eligible | The work is done and the customer owes a fixed amount |
| Progress billing on an unfinished job | Often ineligible or limited | The customer can dispute or offset it until the job is complete |
| Retainage | Usually ineligible | It is not payable until the project is finished and accepted |
| Invoices more than 90 days past invoice | Typically ineligible | Standard aging cut-off |
| Balance from one large contractor | Capped, commonly at 20% to 25% of eligible receivables | Concentration limit |
That is why many fabricators find a line of credit sized on receivables smaller than they expected, and why some turn to contract financing for a large job. See eligible vs ineligible receivables, contract financing and lines of credit for manufacturers.
The shop floor as collateral
Beam lines, plasma and saw cutting equipment, drill lines, welding equipment, blasting and paint systems, overhead cranes, forklifts and delivery trucks give a lender real collateral. It is valued at what it would bring in an orderly sale, not what it cost, and specialized equipment in a narrow market can appraise well below its purchase price. See net orderly liquidation value.
Equipment can be financed through 7(a) with a maturity of up to 10 years, or 15 where its useful life supports it, or through equipment lenders who lend against the unit itself. See equipment financing vs SBA 7(a).
The shop building matters too. A structural fabricator needs crane bays, high ceilings, heavy power and outdoor storage for steel, and moving is expensive. SBA 504 financed 21 projects in this industry at a median of $1,166,000. 504 finances owner-occupied real estate and long-life equipment, typically 50% from a bank, 40% from a certified development company and 10% from the borrower, and the business must occupy at least 51% of an existing building. See SBA 7(a) vs SBA 504.
Why so many shops change hands
Acquisitions were 24 loans (16.3%), well above the national 10.4%, at a median of $900,750 and a median rate of 9.25%. Many structural shops were built by one founder over decades, and the sale is the founder's retirement. That makes transition the lender's central question: who runs estimating, who holds the contractor relationships, and whether the certified welders and the shop foreman stay. See buying a business from a retiring owner and buyer industry experience.
SBA's rules for a complete change of ownership apply: an equity injection of at least 10% of total project costs; a seller note that counts for up to half of it only on full standby for the life of the SBA loan; no earnout; and a business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. From that date a change of ownership must also show 1.25x debt service coverage on historical results, financial due diligence is required on every one, and a quality of earnings report is required on acquisitions of $3 million or more excluding real estate. A fabricator's earnings swing with the jobs in a given year, so a buyer should test the payment against more than one year's results. See financing a machine shop acquisition.
What goes in the file
Start with SBA's standard 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 notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more, each of whom personally guarantees the loan.
Then add what a fabricator's lender reads first: a current work-in-progress schedule, the backlog by job and customer, an AR aging with retainage shown separately, revenue by customer for the last two or three years, the equipment list with any liens, and the bonding line and its terms if the shop is bonded. For an acquisition, add the target's latest full year of figures and the letter of intent.
A clean work-in-progress schedule that ties to the financial statements answers most of a lender's questions about a fabricator.
Transparent builds the file into a full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day, and takes it to the 278 lenders in its book that write SBA 7(a) and 504, or the 235 that write asset-based loans and lines where a receivables line fits better. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- Can a steel fabricator get an SBA line of credit?
- Yes. SBA Express loans, up to $500,000 with a 50% guaranty, made up 40.8% of loans in this industry, and an Express loan can be structured as a revolving line. Larger needs can use a standard 7(a) loan or an SBA CAPLines facility.
- Why won't a lender advance against all my receivables?
- Progress billings on unfinished jobs and retainage are often ineligible for a borrowing base, because the contractor can dispute or withhold them until the job is done. Invoices more than 90 days past invoice are typically ineligible too.
- What rate do structural fabricators pay on SBA loans?
- The median rate at approval was 10%, against 10.25% nationally, with the middle half between 8.5% and 11.25%. Acquisition loans had a median rate of 9.25%.
- Is it hard to buy a fabrication shop with an SBA loan?
- It is common: acquisitions were 16.3% of loans, against 10.4% nationally, at a median of $900,750. The hard part is showing the lender that estimating, customer relationships and key welders stay after the owner leaves.
- Does bonding affect my SBA loan?
- It can. The surety has its own indemnity agreement and working capital expectations, and a lender will want to see the bonding line and how new debt affects it.