SBA lenders approved 141 7(a) loans to long-distance less-than-truckload carriers between October 2023 and June 2026, $23.8 million from only 26 lenders. The loans are small: a median of $48,200 against the national $150,300, and half of them went through SBA Express. The median rate, 12%, sits well above the national 10.25%, largely because loans of $50,000 or less carry SBA's widest rate cap. Only one loan financed an acquisition. Larger approvals rest on terminal real estate, a clean safety record and revenue spread across many shippers.
| Measure | General Freight Trucking, Long-Distance, Less Than Truckload | All industries |
|---|---|---|
| SBA 7(a) loans approved | 141 | 162,355 |
| Median loan | $48,200 | $150,300 |
| Middle half of loans | $20,000 – $150,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 2.8% | 12.9% |
| Median rate at approval | 12% | 10.25% |
| Middle half of rates | 10.75% – 13.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 1 (0.7%) | 16,849 (10.4%) |
| Median acquisition loan | $815,900 | $693,000 |
| Lenders that made these loans | 26 | 1,648 |
| SBA 504 loans (real estate, equipment) | — | 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
- 141 (Oct 2023 – Jun 2026)
- Lenders that approved one
- 26
- Median loan
- $48,200 (national $150,300)
- Median rate at approval
- 12% (national 10.25%)
- Through SBA Express
- 49.6% of loans
- Acquisitions
- 1 loan, $815,900 at 10.5%
A small-loan market with few lenders
NAICS 484122 covers carriers that move partial loads over long distances: freight from many shippers consolidated onto one trailer, run between terminals, and broken down again for delivery. From 1 October 2023 to 30 June 2026 the industry took 141 SBA 7(a) loans worth $23,771,900. Only 26 lenders made them, a narrow base for an industry of this size in SBA's data.
The loans are small. The median was $48,200, about a third of the national median. The middle half ran from $20,000 to $150,000, the top tenth began at $350,000, and just 4 loans (2.8%) reached $1 million. The median loan supported 2 jobs. Read together, these figures say most SBA borrowers in this code are small operators rather than regional terminal networks, which have equipment and receivables to borrow against outside the program.
| Figure | LTL carriers | National | What it tells you |
|---|---|---|---|
| Median loan | $48,200 | $150,300 | Working capital, repairs and small equipment needs |
| Middle half | $20,000 to $150,000 | Few loans large enough to buy a terminal or a fleet | |
| Top tenth starts at | $350,000 | Large requests are rare | |
| Median rate | 12% (middle half 10.75% to 13.25%) | 10.25% | High, and set by loan size more than credit |
| Fixed-rate share | 3.5% | Nearly every loan floats with the base rate | |
| SBA Express | 49.6% of loans | Half the lending is small Express loans with a 50% guaranty | |
| Start-ups | 5% of loans | Lenders rarely finance a new LTL operation | |
| Acquisitions | 1 loan (0.7%), $815,900 at 10.5% | 10.4% of loans | Buying an LTL carrier with SBA money is unusual |
| SBA 504 | None | No terminal real estate financed through 504 in these years |
Why the rates run high
A 12% median is not mainly a verdict on LTL credit. SBA caps what a lender may charge over the base rate, and the cap widens as the loan gets smaller, because a small loan costs nearly as much to underwrite and service as a large one. With a median of $48,200, the typical LTL loan sits in the band where lenders may charge the most, and they generally price small loans toward it.
| Loan size | SBA's cap on a variable rate | Where LTL loans fall |
|---|---|---|
| $50,000 or less | Base rate plus 6.5% | The median loan, $48,200 |
| $50,001 to $250,000 | Base rate plus 6% | Most of the upper middle half, to $150,000 |
| $250,001 to $350,000 | Base rate plus 4.5% | The top tenth begins at $350,000 |
| Above $350,000 | Base rate plus 3% | The 4 loans of $1 million or more, and the one acquisition |
The pattern follows. The single acquisition, at $815,900, priced at 10.5%, well under the industry median. A carrier that needs working capital and an equipment refinance is usually better served by one properly documented 7(a) loan than by several small Express loans: the larger loan falls under a tighter rate cap, and an Express loan carries only a 50% guaranty against 75% or 85% on a standard 7(a). See SBA 7(a) vs SBA Express and SBA's maximum interest rate, and current SBA rates by lender type.
How an LTL carrier reads on paper
An underwriter who knows truckload carriers has to adjust for LTL. A truckload carrier hauls one shipper's freight door to door; an LTL carrier runs pickup-and-delivery trucks, cross-dock terminals and linehaul between them, and bills hundreds of small freight bills a week. That changes what the file has to prove.
| What the lender checks | Where it shows | Why it matters in LTL |
|---|---|---|
| Shipper spread | AR aging by customer | Many small accounts is the strength of the model; lenders want to see it |
| Cargo claims | Claims history, insurance loss runs | Handling freight at every terminal raises damage and shortage claims |
| Safety record | FMCSA data, insurance renewals | A poor rating can raise premiums or cost shipper contracts |
| Terminals | Leases, deeds, occupancy costs | The network is the business; a lost terminal lease breaks a lane |
| Fleet age | Equipment list with years and liens | Older tractors mean repair spending that is not in the P&L's maintenance line yet |
| Fuel and accessorial charges | Rate tariffs, fuel surcharge schedule | Shows whether cost swings pass through to shippers |
Cash flow coverage is measured the usual way: SBA requires at least 1.15x at the business and 1.0x globally, including the owners' personal income and debts. What worries lenders in LTL is how thin that cushion becomes in a soft freight market, when a terminal network's fixed costs do not fall with volume. A year-to-date P&L that shows the current market, not last year's, answers that before it is asked. See debt service coverage ratio and global cash flow.
Trucks, trailers and terminals as collateral
Rolling stock is most of an LTL carrier's balance sheet and much of it is already pledged. Equipment lenders finance tractors and trailers against the units themselves; Transparent's book holds 244 lenders that write equipment, and for a fleet refresh they are usually the first stop. A 7(a) loan can carry equipment for up to 10 years, or 15 if its useful life supports it, but a lender taking a used tractor as collateral will value it at what it would fetch at auction, not its book value. See equipment financing vs SBA 7(a) and refinancing equipment loans.
Terminals are the better collateral and the reason to look at SBA at all. A 7(a) loan finances real estate for up to 25 years. No LTL carrier used SBA 504 in these years, but an owner-occupied cross-dock is the kind of property 504 was built for, provided the carrier occupies at least 51% of an existing building or 60% of new construction. The usual 504 split is 50% bank, 40% CDC and 10% borrower. See SBA 7(a) vs 504.
Receivables, factoring and cash advances
LTL receivables are unusually well suited to a borrowing base: many shippers, small invoices, and no single customer dominating. Asset-based lenders typically advance 80% to 90% of eligible receivables, exclude invoices more than 90 days past invoice, and commonly cap any single customer at 20% to 25% of eligible receivables, a limit an LTL carrier rarely hits. The 235 lenders in the book that write asset-based loans and lines are often a better fit for working capital than a term loan; see lines of credit for trucking companies and factoring vs asset-based lending.
Many small carriers run on factoring or merchant cash advances instead. SBA will not refinance an active merchant cash advance or a factoring agreement. From 1 October 2026, under SOP 50 10 8.1, an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. A carrier with advances outstanding usually needs a conventional or asset-based refinance first; see refinancing cash advances for trucking companies and MCA refinancing.
Clean receivables are the LTL carrier's best asset. Pledging them to a factor can close off the cheaper financing they would support.
Buying an LTL carrier
One acquisition in nearly three years, at $815,900, tells a buyer that SBA lenders see few LTL deals and will underwrite one closely. A terminal network is a going concern whose value sits in its lanes, its shippers, its terminal leases and its operating record, and a buyer has to show how each survives the sale. Whether the carrier is bought as a company or as assets matters here, because operating authority, the safety history and insurance relationships sit with the legal entity; see asset vs stock purchase financing.
The SBA rules for a change of ownership apply in full. The buyer injects at least 10% of total project costs; a seller note counts toward half of that only if it is on full standby for the life of the loan. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation. From 1 October 2026 every change of ownership needs financial due diligence and must show 1.25x coverage on historical results, and an acquisition of $3 million or more excluding real estate needs a quality of earnings report. SBA prohibits an earnout to the seller, and the seller may not stay on as an owner, officer or employee; the seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. More in financing a trucking company acquisition.
Preparing an LTL carrier's file
- Business tax returns for 2–3 years, a P&L, a year-to-date P&L through last month-end and a balance sheet.
- A debt schedule listing every truck and trailer note, with copies of the notes being refinanced.
- An equipment list: unit, year, mileage, lienholder and payoff.
- An AR aging by shipper with days outstanding, and any factoring or advance agreements.
- Insurance loss runs, the cargo claims history and the carrier's safety record.
- Terminal leases or deeds, and personal tax returns and a personal financial statement for each 20%+ owner.
Every owner of 20% or more personally guarantees an SBA loan. Transparent's book holds 278 lenders that write SBA 7(a) and 504, and only some of them want LTL; finding those is most of the work. Once the documents are in, Transparent builds the full lender package in a day, and on SBA loans the lender pays Transparent, not the borrower. Related reading: local general freight, specialized long-distance freight and freight brokers and forwarders.
Common questions
- Why is the median SBA rate for LTL carriers 12%?
- Mostly because the loans are small. The median loan, $48,200, falls in the band where SBA lets lenders charge up to the base rate plus 6.5%. Larger loans face tighter caps; the one acquisition priced at 10.5%.
- Should an LTL carrier finance trucks with an SBA loan?
- Usually not first. Equipment lenders finance tractors and trailers against the units. SBA fits better for a terminal, working capital, or refinancing a mix of debts into one longer-term loan.
- Can SBA refinance my factoring or cash advance?
- Not while it is active. From 1 October 2026 an advance becomes eligible only after it has been converted to a term loan that has amortized for at least 24 months with no new advance.
- Can I buy an LTL carrier with an SBA loan?
- Yes, but it is rare: one such loan was approved in these years. Expect a business valuation where the amount financed less appraised real estate and equipment exceeds $250,000, an equity injection of at least 10% of total project costs, a personal guarantee from each 20%+ owner, and from 1 October 2026 coverage of 1.25x on historical results.
- Why did only 26 lenders make these loans?
- The data shows the count, not the reasons, but the pattern is familiar: many SBA lenders limit their trucking exposure, and an LTL network with terminals, linehaul and hundreds of shipper accounts takes more work to underwrite than a small truckload carrier. The lenders that do understand it have to be found and shown a complete file.