SBA lenders approved 187 7(a) loans to floor covering retailers from October 2023 to June 2026: $128,000,000 from 72 lenders. The median loan, $250,000, was well above the national $150,300, and 38 loans, 20.3%, were $1 million or more. The median rate matched the national 10.25%. Buyers took 19.8% of loans, nearly twice the national 10.4%, at a median of $888,000, and 21.4% went to start-ups; 17.6% went to franchises. Lenders look past the showroom to installation, builder accounts and customer deposits.
| Measure | Floor Covering Retailers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 187 | 162,355 |
| Median loan | $250,000 | $150,300 |
| Middle half of loans | $100,000 – $628,700 | $50,000 – $500,000 |
| Loans of $1 million or more | 20.3% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.25% – 11% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 37 (19.8%) | 16,849 (10.4%) |
| Median acquisition loan | $888,000 | $693,000 |
| Lenders that made these loans | 72 | 1,648 |
| SBA 504 loans (real estate, equipment) | 28 | 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
- 187 (Oct 2023 – Jun 2026), from 72 lenders
- Median loan
- $250,000 (national $150,300)
- Median rate at approval
- 10.25% (national 10.25%)
- Acquisitions
- 37 loans (19.8%), median $888,000 at 9.25%
- Start-ups and franchises
- 21.4% and 17.6% of loans
- Loans of $1 million or more
- 38 (20.3%)
Bigger loans than most retailers
Floor covering retailers (NAICS 449121) sell carpet, hardwood, laminate, vinyl plank, tile and rugs from a showroom, and most of them install what they sell. That second business is why the loans run large for retail. A store needs a showroom, a warehouse for rolls and cartons, cutting equipment, vans and a crew or a bench of subcontract installers, and it carries material for jobs that will not be paid for until they are finished.
| Figure | Floor covering retailers | National |
|---|---|---|
| Median loan | $250,000 | $150,300 |
| Middle half of loans | $100,000 to $628,700 | |
| 90th percentile | $1,873,980 | |
| Loans of $1 million or more | 38 (20.3%) | |
| Median rate | 10.25% (middle half 9.25% to 11%) | 10.25% |
| Fixed-rate share | 12.8% | |
| Acquisitions | 37 loans (19.8%), median $888,000 at 9.25% | 10.4% of loans |
| Start-ups | 21.4% of loans | |
| Franchises | 17.6% of loans | |
| SBA Express | 33.7% of loans | |
| SBA 504 | 28 loans, median $669,000 |
One loan in five was $1 million or more, and the 90th percentile reached $1,873,980. Loan size matters for price: SBA caps variable 7(a) rates at the base rate plus 3% above $350,000, against plus 6% from $50,001 to $250,000, so the larger flooring loans sit under the tightest cap. The 28 SBA 504 loans, at a median of $669,000, mostly finance stores buying their own showroom and warehouse; a 504 borrower must occupy at least 51% of an existing building. See SBA 7(a) versus 504.
Four kinds of revenue under one roof
Two stores with the same sales can carry very different risk, depending on who the customer is. Lenders ask for sales by channel because each one pays differently and fails differently.
| Channel | How it pays | What the lender checks |
|---|---|---|
| Homeowners, retail | Deposit at order, balance at installation, often by card or consumer financing | Deposits held against jobs not yet installed; margin after installation labor |
| Builders and multifamily developers | Invoiced on terms, by phase or by unit | Concentration in one or two builders, how long they take to pay, and exposure to a slowdown in housing starts |
| Commercial jobs | Progress billing through a general contractor, often with retainage held back | Receivables aging, retainage outstanding, and whether the store is really acting as a subcontractor |
| Insurance replacement work | Paid by the carrier or through the homeowner after a claim | Slow and paperwork-heavy receivables; dependence on adjusters and restoration contractors |
Builder work deserves its own attention. It fills installers' calendars and moves volume, but a store that does most of its business with one or two home builders is exposed to their schedules and their pace of payment, and lenders price that. See customer concentration and debt, and for the builders' side of the cycle, new single-family housing construction.
Installers, callbacks and deposits
Installation is where flooring stores make and lose money. Many use subcontract crews paid by the job rather than employees, which keeps overhead flexible but means the installers are free to work for a competitor, or to follow a departing owner. Lenders ask how many crews the store relies on, how long they have worked with it, and how callbacks and warranty claims are handled, because a failed installation means buying the material again and paying for the labor twice.
Customer deposits are the other feature of the balance sheet. A special-order carpet or hardwood job is paid in part up front, and the material is ordered against it. Those deposits are money owed back in work, not earned revenue, and a lender adds them to the store's liabilities. A store that funds this month's payroll with deposits for next month's jobs looks liquid until sales slow. Inventory, meanwhile, is a mix of stock rolls, cartons, remnants and special orders already assigned to customers; only the stock rolls and cartons carry real value for a lender. Asset-based lenders advance inventory at up to 85% of net orderly liquidation value, or roughly half of cost. See inventory advance rates.
Deposits held for jobs not yet installed are a liability. Lenders look for them on the balance sheet, and ask if they are missing.
Buying an established flooring store
Buyers took 37 loans, 19.8% of the total, at a median of $888,000 and a median rate of 9.25%, a point below the industry's overall median. A purchase loan of that size usually crosses SBA's valuation line, since a flooring store has little real estate or equipment to subtract: where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation, and the loan for the purchase cannot exceed it. See the SBA valuation requirement and financing a flooring company acquisition.
- What transfers. The builder accounts, the installer crews, the supplier relationships and the store's reviews. Lenders ask which of them belong to the business and which to the seller.
- Equity. At least 10% of total project costs, with a seller note counting toward up to half of it only on full standby for the life of the SBA loan. See seller notes on standby.
- No earnout. SBA prohibits an earnout to the seller, so the price is fixed at closing. If the builder book might not hold up, that belongs in the valuation and the buyer's diligence, not in a payment that depends on it.
- Coverage and diligence. 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, with a quality of earnings report on acquisitions of $3 million or more excluding real estate.
- The handover. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, but may not stay on as an owner, officer or employee.
Start-ups, franchises, and preparing the file
Start-ups took 21.4% of loans and franchises 17.6%. A franchise brand brings a store design, supplier programs and a marketing system, which helps a lender believe a projection, but the file still stands on the owner's experience and equity: at least 10% of total project costs for a start-up. Buying an existing franchised store adds the franchisor's consent to the transfer. See franchise resale financing and the equity injection.
The SBA checklist comes first: 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. A flooring store's file is stronger with:
- Sales and gross margin by channel: retail, builder, commercial and insurance work
- An accounts receivable aging by customer, with retainage shown separately
- A schedule of customer deposits held and the install dates they relate to
- An inventory report that separates stock rolls and cartons from remnants and customer special orders
- A list of installer crews, whether employees or subcontractors, and how long each has worked with the store
- For a purchase: the letter of intent and the store's latest full year of figures, never an older year
Related industries: flooring contractors, which install without the showroom, window treatment retailers, furniture retailers and tile contractors. Once the documents are in, Transparent builds the full lender package in a day; on SBA loans the lender pays Transparent, not the borrower.
Common questions
- What is a typical SBA loan for a flooring store?
- The median 7(a) loan to floor covering retailers from October 2023 to June 2026 was $250,000, with the middle half between $100,000 and $628,700, at a median rate of 10.25%. One loan in five was $1 million or more.
- Can I buy a flooring store with an SBA loan?
- Yes, and many buyers do: 19.8% of loans in this industry financed a purchase, at a median of $888,000. Expect an independent business valuation, at least 10% of total project costs as equity, and no earnout to the seller.
- How do lenders treat customer deposits on special orders?
- As a liability. A deposit is work the store still owes, so lenders count it against the business and look at how much of it has already been spent on operating costs.
- Does builder work help or hurt an SBA application?
- It helps volume and hurts if it is concentrated. Lenders ask what share of sales comes from the largest builders, how quickly they pay, and how the store would cope if a builder slowed down.
- Do subcontract installers affect the loan?
- They affect the risk. Lenders want to know how many crews the store depends on, how long they have stayed, and whether they would stay through a change of owner.