SBA lenders approved 126 7(a) loans to framing contractors from October 2023 through June 2026, $21,665,600 from 43 lenders. The median loan was $52,500, about a third of the national $150,300, and 71.4% of loans went through SBA Express. The median rate was 10.75% against 10.25% nationally. Start-ups were only 1.6% of loans, and just 2 loans, 1.6%, financed an acquisition. Lenders decide these loans on a record of steady work for builders, how exposed the contractor is to lumber prices, and how its crews are paid and insured.
| Measure | Framing Contractors | All industries |
|---|---|---|
| SBA 7(a) loans approved | 126 | 162,355 |
| Median loan | $52,500 | $150,300 |
| Middle half of loans | $30,000 – $150,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 2.4% | 12.9% |
| Median rate at approval | 10.75% | 10.25% |
| Middle half of rates | 9.75% – 12.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 2 (1.6%) | 16,849 (10.4%) |
| Median acquisition loan | $1,588,150 | $693,000 |
| Lenders that made these loans | 43 | 1,648 |
| SBA 504 loans (real estate, equipment) | 6 | 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
- 126 (Oct 2023 – Jun 2026), from 43 lenders
- Median loan
- $52,500 (national $150,300)
- SBA Express share
- 71.4%
- Median rate at approval
- 10.75% (national 10.25%)
- Start-ups / acquisitions
- 1.6% / 1.6% of loans
- SBA 504
- 6 loans, median $575,500
What 126 approvals show
Framing contractors (NAICS 238130) build the structural skeleton of a building: wall panels, floor and roof systems, trusses set by crane, sheathing, and on larger projects wood-frame or light-gauge framing for apartments and light commercial buildings. The median loan supported 3 jobs, but a framing company's payroll understates its size, because many framers run subcontracted crews paid per square foot or per house.
| Figure | Framing contractors | What it tells a borrower |
|---|---|---|
| Loans / total / lenders | 126 / $21,665,600 / 43 | Small total dollars for the number of loans |
| Median loan | $52,500 | About a third of the national $150,300 |
| Middle half of loans | $30,000 to $150,000 | Trucks, trailers, a telehandler, tools and working capital |
| 90th percentile | $350,000 | Few loans are large |
| Loans of $1 million or more | 3 (2.4%) | Rare |
| Median rate (middle half) | 10.75% (9.75% to 12.5%) | Above the national 10.25%, with a high upper quartile |
| Fixed-rate share | 19% | About one loan in five at a fixed rate |
| Median term | 120 months | Ten years |
| SBA Express | 71.4% | The dominant route |
| Start-ups / franchises | 1.6% / none | Lenders fund framers with a record |
| Acquisitions | 2 loans (1.6%), median $1,588,150 at 10.38% | Almost no SBA-financed sales |
| SBA 504 | 6 loans, median $575,500 | Owner-occupied yards, shops or equipment |
Why framing runs on SBA Express
Seven loans in ten went through SBA Express. It goes up to $500,000 with a 50% guaranty and lets the lender decide on its own credit process, which suits what framers borrow for: a crew truck, a trailer, a telehandler or forklift to move bundles and set trusses, compressors and nailers, and working capital to carry payroll between draws. A request that small rarely justifies the full 7(a) process; see SBA 7(a) vs SBA Express.
Small loans carry higher rate caps. SBA caps variable 7(a) rates at the base rate plus 6.5% for loans of $50,000 or less, and plus 6% from $50,001 to $250,000. The median loan, $52,500, sits right at that line, and much of the lower half falls under the higher cap, which fits an upper quartile of 12.5%. The 19% fixed-rate share fits loans for vehicles and equipment, where lender and borrower both prefer a known payment. See SBA maximum interest rates.
For a contractor whose main need is one piece of equipment, a dedicated equipment loan secured by the machine is often the simpler comparison, and 244 lenders in Transparent's book write equipment finance. See equipment financing vs SBA 7(a).
Labor-only or furnish-and-install: the lumber question
The single most important fact in a framing contractor's file is who buys the lumber. It changes the size of the working-capital need, the margin, and the risk the lender is taking.
| Contract type | How it works | What the lender looks at |
|---|---|---|
| Labor only | The builder supplies the lumber package; the framer supplies crews and equipment | Crew productivity, builder concentration, payroll and insurance. Little material risk |
| Furnish and install | The framer buys lumber and trusses and bills for material plus labor | Supplier credit terms, lumber price clauses in contracts, and how margin held up when lumber prices moved |
| Production residential | Per-house pricing on a builder's schedule, often in draws | The builders' pace of starts and closings, and how fast they pay |
| Multifamily and light commercial | Progress billings to a general contractor, less retainage | Retainage receivable, change orders, schedule delays and job margin |
A furnish-and-install framer that priced a job months ahead and then paid more for lumber absorbs the difference unless the contract lets it pass the increase through. Lenders look at gross margin across years with different lumber markets, and ask to see the escalation language in the largest contracts. A labor-only framer avoids that risk but carries a different one: its margin is almost entirely labor, so productivity and crew stability decide whether the business makes money.
Builders, crews and insurance
Framing is the first trade after the foundation and one of the most exposed to housing starts. Most framers work for a small number of builders, and a lender will want revenue by builder for the last full year. A framer whose largest builder slows its starts feels it within weeks. Relationships with several builders, or a mix of single-family and multifamily work, read as steadier than one production builder, however large.
Crews are the second question. Framing is physically dangerous work, so workers' compensation is a large cost, and contractors that pay crews as subcontractors show better margins on paper while taking on audit and misclassification risk if the arrangement is challenged. Lenders ask for the latest workers' compensation audit, certificates of insurance for subcontracted crews, and the general liability policy.
Framers paid slowly by general contractors, or waiting on retainage from multifamily jobs, sometimes fill the gap with merchant cash advances. SBA will not refinance an active advance, and from 1 October 2026 an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. See refinancing cash advances for contractors. A working-capital line sized to receivables is the better tool; see lines of credit for contractors.
Show revenue by builder, whether you buy the lumber, and how your crews are paid. Those three answers are most of a framing credit decision.
Why start-ups and acquisitions are so rare
Only 1.6% of loans went to start-ups, a striking figure for a trade that people enter by leaving a larger framer to run their own crew. The likely explanation is in the loan sizes: a new framer needs little capital and can finance a truck and tools without SBA, so the SBA borrowers are established companies with filed returns and a builder list. A start-up that does apply needs an equity injection of at least 10% of total project costs, a personal guarantee from every owner of 20% or more, and a record of running crews that belongs in the resume supporting Form 1919.
Only 2 loans financed a change of ownership, at a median of $1,588,150 and a median rate of 10.38%; with two loans, that median is simply their midpoint. Framing companies seldom sell with SBA financing because the value sits in the owner's builder relationships and the crews, and neither transfers on a bill of sale. A buyer of an established framer should expect an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, the seller limited to consulting for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, no earnout, and, from that date, financial due diligence and 1.25x coverage on historical results. See buyer industry experience requirements.
The 6 SBA 504 loans, at a median of $575,500, fit a framer buying a yard or shop to store equipment and stage material. 504 finances owner-occupied real estate and long-life equipment, typically 50% from a bank, 40% from the CDC and 10% from the borrower; see SBA 7(a) vs 504.
Preparing the file
The SBA list 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 any notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For a framing contractor, add:
- Revenue by builder or general contractor for the last full year
- Which jobs are labor-only and which include material, with any lumber escalation clauses
- A receivables aging with retainage shown separately
- Workers' compensation audit, liability policy and certificates for subcontracted crews
- Equipment list, and quotes for anything being financed
SBA requires debt service coverage of at least 1.15x, and 1.0x globally once the owners are included. 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
- How much do framing contractors usually borrow from SBA?
- Not much. The median loan was $52,500, with the middle half between $30,000 and $150,000, and 71.4% of loans went through SBA Express.
- Can I get an SBA loan to start a framing company?
- It is possible but uncommon: only 1.6% of the trade's SBA loans went to start-ups. Expect to inject at least 10% of total project costs and to show years of running crews and a builder who plans to use you.
- Does buying my own lumber make an SBA loan harder?
- It makes the file more detailed. A furnish-and-install framer needs more working capital and carries lumber price risk, so lenders ask for supplier terms, escalation clauses and margins across different lumber markets.
- Why are SBA rates higher for small framing loans?
- SBA's rate caps rise as loans get smaller: base plus 6.5% up to $50,000 and base plus 6% from $50,001 to $250,000. The trade's median loan sits at that line, so many framing loans are priced under the higher caps.
- Can an SBA loan pay off a merchant cash advance for a framer?
- Not while the advance is active. From 1 October 2026 an advance becomes eligible once converted to a term loan that has amortized for at least 24 months with no new advance since.