SBA lenders approved 124 7(a) loans to logging businesses (NAICS 113310) between October 2023 and June 2026, worth $21,939,100 from 41 lenders. The median loan was $63,750, well under the national $150,300, at a median rate of 10% against 10.25% nationally. SBA Express carried 65.3% of loans, fixed rates were unusually common at 28.2%, and acquisitions were rare at 1.6%. Lenders underwrite the equipment, the mills the crew delivers to, and whether the cash flow survives the months when the woods are shut.
| Measure | Logging | All industries |
|---|---|---|
| SBA 7(a) loans approved | 124 | 162,355 |
| Median loan | $63,750 | $150,300 |
| Middle half of loans | $40,350 – $165,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 3.2% | 12.9% |
| Median rate at approval | 10% | 10.25% |
| Middle half of rates | 8.75% – 11.31% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 2 (1.6%) | 16,849 (10.4%) |
| Median acquisition loan | $222,500 | $693,000 |
| Lenders that made these loans | 41 | 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
- 124 from 41 lenders (Oct 2023 – Jun 2026)
- Median loan
- $63,750 (national $150,300)
- Median rate at approval
- 10% (national 10.25%)
- Through SBA Express
- 65.3% of loans
- Fixed-rate share
- 28.2%
- Acquisitions
- 2 loans (1.6%), median $222,500
What the SBA figures say about logging
NAICS 113310 covers businesses that cut timber and move it to the landing or the mill: felling, skidding or forwarding, delimbing and bucking, chipping in the woods, and often hauling logs by truck. Some loggers buy standing timber (stumpage) and sell logs; many more cut on contract for a landowner, a timber dealer or a mill. The median business supported just 2 jobs, which is the picture of a family crew: an owner running a machine, a partner or son on another, and a truck.
| Figure | Logging | National | What it suggests |
|---|---|---|---|
| Median loan | $63,750 | $150,300 | Less than half the typical SBA loan |
| Middle half of loans | $40,350 to $165,000 | One machine or one truck at a time | |
| 90th percentile | $362,600 | Even the large loans are modest | |
| Loans of $1 million or more | 4 (3.2%) | Rare | |
| Median rate | 10% (middle half 8.75% to 11.31%) | 10.25% | Slightly under national despite the small loan size |
| Fixed-rate share | 28.2% | More than one loan in four is fixed | |
| SBA Express | 65.3% of loans | Most loans are small and quick to document | |
| Start-ups | 5.6% of loans | A small share; lenders want logging experience first | |
| Franchises | None | Not a franchised industry | |
| Acquisitions | 2 loans (1.6%), median $222,500 at 8.75% | 10.4% | Logging businesses rarely sell as going concerns |
| SBA 504 | 2 loans, median $846,000 | Occasional long-life equipment or yard property |
The shape is unusual. With 41 lenders making 124 loans, this is a real market, but it is a market of small loans: the middle half runs from $40,350 to $165,000, which is the price range of a used skidder, a forwarder or a log truck rather than a whole operation. Two-thirds went through SBA Express, where loans go up to $500,000 with a 50% guaranty and the lender carries more of the risk and more of the decision; see SBA 7(a) vs SBA Express. The high fixed-rate share fits equipment borrowers who want a payment that does not move while the machine pays for itself.
Equipment is the collateral, and the appraisal is the ceiling
A logging business owns feller bunchers, skidders, forwarders, processors, loaders, chippers and trucks. That is heavy iron with an active resale market, which lenders like, but it wears hard: machines work in mud, cold and slash, and hours accumulate quickly. A lender will value it at what it would bring in an orderly sale, not replacement cost; see net orderly liquidation value and equipment appraisals.
| What is financed | SBA maturity | What the lender checks |
|---|---|---|
| Used skidder, forwarder or loader | Up to 10 years, or 15 if its useful life supports it | Hours, age and condition against the proposed term |
| Log truck and trailer | Up to 10 years, tied to useful life | Title, weight rating, and who drives it |
| Working capital for the slow season | Up to 10 years | Whether cash flow in the working months covers the shut months |
| Yard, shop or land with real estate | Up to 25 years | Appraisal, and whether the business occupies it |
Equipment lenders compete hard for the same machines, often with dealer financing that is quicker to arrange. The SBA loan earns its place when the borrower wants a longer term than an equipment lender will give, needs to refinance several notes into one payment, or wants working capital alongside the machine. See equipment financing vs SBA 7(a) and equipment lease vs equipment loan. Refinancing equipment notes with a 7(a) loan requires the new payment to be at least 10% lower and the existing debt current for the last 12 months; more in refinancing equipment loans.
What lenders worry about in logging
The season. Loggers stop when the ground cannot carry the machines: spring thaw in the north, wet stretches in the south, and in some regions fire restrictions in dry summers. Revenue arrives in bursts and the payments do not. A lender will read monthly bank statements or a monthly P&L to see how the business handles the gaps, and a file that shows cash set aside in the working months reads well. A seasonal line can bridge the gap; see seasonal lines of credit.
The mill. Many crews deliver to one or two mills, and a mill curtailment or closure can take away most of the market overnight. Lenders ask where the wood goes, how far it hauls, and whether there is a second outlet. Contracts with landowners and timber buyers, and any stumpage purchases the business has committed to, belong in the file.
The owner. With a median of 2 jobs, the owner usually runs a machine. An injury ends production. Lenders look for experience, a crew that can run without the owner for a stretch, and insurance. Logging's workers' compensation and liability costs are high, and they come off cash flow before debt service.
Fuel and hauling costs. Diesel and trucking distance decide whether a job makes money. Lenders compare gross margin across years and ask why it moved.
A lender does not need logging to be a steady business; it needs to see that this operator has handled the unsteady parts before.
Buying a logging business, and why it is rare
Only 2 of 124 loans were acquisitions, at a median of $222,500. Logging businesses seldom sell as going concerns: the value is in the equipment and in the owner's standing with landowners and mills, and the second does not transfer easily. A buyer is usually buying a fleet plus an introduction.
That shapes the SBA rules that apply. SBA requires an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, or where buyer and seller are related. In a logging purchase most of the price is often equipment, so the equipment appraisal does much of the work, and a valuation may not be triggered unless the price carries real goodwill. Family transfers, common in this industry, are a related-party sale and need the valuation regardless; see financing a family business transfer.
- The buyer injects at least 10% of total project costs in a complete change of ownership.
- A seller note counts toward up to half of that only on full standby for the life of the SBA loan.
- SBA prohibits an earnout to the seller, and the seller may consult for up to 12 months (up to 24 months under SOP 50 10 8.1 from 1 October 2026) but not stay as an owner, officer or employee.
- From 1 October 2026, a change of ownership must show debt service coverage of 1.25x on historical results, and change-of-ownership loans amortize over no more than 10 years except the real estate share.
Preparing a logger's SBA file
Lenders ask for SBA's standard documents: two to three years of business tax returns, a P&L and balance sheet, a year-to-date P&L through last month-end, a debt schedule with copies of the notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. Every one of those owners personally guarantees the loan. For a logger, add an equipment list with year, make, model, hours and what is owed on each machine, and a short narrative of who buys the wood and where it goes. Many small logging operations file on a Schedule C or keep books on a cash basis; that is workable, but the figures need to tie to the returns. See the business debt schedule.
A worked example: a crew earning 300 a year before debt service, with payments of 240 on its equipment, covers at 1.25x. If a thaw costs two months of production and the owner draws the same salary, that cover can thin quickly, which is why lenders test the slow months and not just the annual total. See debt service coverage ratio.
Transparent's lender book holds 1,800+ lenders, including 278 that write SBA 7(a) and 504 and 244 that write equipment, so a logging file can be put in front of both kinds. Transparent charges nothing before a loan closes, and on SBA loans the lender pays Transparent, not the borrower. Current SBA pricing is on SBA loan rates.
Common questions
- How much do SBA lenders lend to logging businesses?
- The median 7(a) loan from October 2023 to June 2026 was $63,750, and the middle half ran from $40,350 to $165,000. Only 4 of 124 loans reached $1 million.
- Is SBA Express common for loggers?
- Yes. 65.3% of 7(a) loans to logging businesses went through SBA Express, which lends up to $500,000 with a 50% guaranty. It suits a single machine or a working-capital need.
- Can an SBA loan finance a used skidder or log truck?
- Yes. Equipment financed with a 7(a) loan can run up to 10 years, or 15 if its useful life supports it. The lender will look at hours and condition, and the term has to fit how long the machine will keep working.
- Does seasonality disqualify a logging business?
- No. Lenders expect shut-downs for thaw, wet weather or fire restrictions. They want to see that the business has covered its payments through past slow periods, usually from monthly bank statements or a monthly P&L.
- Why are logging acquisitions so rare in SBA data?
- Only 2 of 124 loans were acquisitions. A logging business's value sits mostly in its equipment and in the owner's relationships with landowners and mills, and buyers more often buy machines than whole companies.