SBA lenders approved 272 7(a) loans to other building equipment contractors from October 2023 through June 2026, $136,890,300 from 91 lenders. The median loan was $200,000 against $150,300 nationally, and 14% of loans were $1 million or more. The median rate was 10.38% against 10.25%. Acquisitions were 12.9% of loans, above the national 10.4%, at a median of $607,500. Lenders decide these loans on the split between one-off installation work and recurring service revenue, on licenses and manufacturer dealer agreements, and on how installation jobs get paid.
| Measure | Other Building Equipment Contractors | All industries |
|---|---|---|
| SBA 7(a) loans approved | 272 | 162,355 |
| Median loan | $200,000 | $150,300 |
| Middle half of loans | $82,350 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 14% | 12.9% |
| Median rate at approval | 10.38% | 10.25% |
| Middle half of rates | 9.48% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 35 (12.9%) | 16,849 (10.4%) |
| Median acquisition loan | $607,500 | $693,000 |
| Lenders that made these loans | 91 | 1,648 |
| SBA 504 loans (real estate, equipment) | 35 | 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
- 272 (Oct 2023 – Jun 2026), from 91 lenders
- Median loan
- $200,000 (national $150,300)
- Median rate at approval
- 10.38% (national 10.25%)
- Loans of $1 million or more
- 38 (14%)
- Acquisitions
- 35 loans (12.9%), median $607,500 at 9.75%
- SBA 504
- 35 loans, median $650,000
Who is in this code, and what the figures show
NAICS 238290 is the building-equipment trade that is not electrical, plumbing or HVAC: elevator, escalator and wheelchair-lift contractors, commercial and residential overhead door and gate installers, automatic and revolving door companies, loading-dock equipment installers, conveyor and material-handling installers, and millwrights and riggers who set machinery in plants. They share a business model more than a trade: sell and install equipment made by someone else, then service it for years.
| Figure | Building equipment contractors | Reading |
|---|---|---|
| Loans / total / lenders | 272 / $136,890,300 / 91 | A sizable market with many active lenders |
| Median loan | $200,000 | A third above the national $150,300 |
| Middle half of loans | $82,350 to $500,000 | Service vans, inventory, working capital and small purchases |
| 90th percentile | $1,499,320 | Acquisitions and buildings |
| Loans of $1 million or more | 38 (14%) | A substantial top end |
| Median rate (middle half) | 10.38% (9.48% to 11.25%) | Close to the national 10.25% |
| Fixed-rate share | 12.5% | Most loans float |
| Median term | 120 months | Ten years |
| SBA Express | 42.3% | A large minority of small, simple loans |
| Start-ups / franchises | 5.1% / 2.6% | Mostly established companies |
| Acquisitions | 35 (12.9%), median $607,500 at 9.75% | An active market in dealers and service books |
The median loan supported 4 jobs. The start-up share is low, 5.1%, because the business is hard to start from nothing: elevator work needs licensed mechanics, door dealers need a manufacturer to appoint them, and machinery riggers need cranes and a safety record before plants will let them in. Lenders here are mostly financing companies that already have those things.
Service revenue is what a lender values most
An installation job is paid once. A maintenance agreement on an elevator, a fleet of dock levelers or a warehouse's overhead doors is paid every month or every quarter, often for years, and code-required inspections keep the customer calling. Underwriters treat those two kinds of revenue very differently.
| Revenue stream | How it behaves | How a lender reads it |
|---|---|---|
| Maintenance and inspection agreements | Recurring, contracted, renews annually or on a multi-year term | The most durable cash flow in the business; renewal history matters |
| Repair calls and parts | Frequent, small, driven by the installed base | Steady if the service book is large; good margins |
| New installation, residential | Deposit and balance on completion | Tied to housing activity and the dealer's marketing |
| New installation, commercial | Progress billings through a general contractor, often with retainage | Lumpy; watch margins, retainage and pay-when-paid terms |
| Plant work: rigging, millwright, conveyors | Project-based, often for a few large industrial customers | Concentration and the customers' own capital spending cycles |
A contractor that can show its service agreements by customer, with contract dates, annual value and renewal history, gives the lender a way to separate the base it can count on from the installation work that rises and falls. That breakdown is also what supports a higher purchase price in an acquisition. Where a few plants or property managers account for most of the service book, expect questions about customer concentration.
Licenses and dealer agreements
Much of the value in these companies rests on permissions that belong to someone. Elevator and conveyance work is licensed in many states and some cities, and the licenses are held by individual mechanics and contractors. Door and dock companies often sell a manufacturer's product under a dealer or distributor agreement that sets a territory and can usually be ended, or must be consented to, when the company is sold.
Lenders ask two questions: does the business still have the right to do this work if a key person leaves, and does it keep its product line if ownership changes. A company whose only licensed elevator mechanic is the owner has a single point of failure, and the lender will want a plan for it. In a sale, the manufacturer's consent to the new owner is a closing condition, not a formality. See change-of-control consents in an acquisition.
If the business sells one manufacturer's doors or services one manufacturer's elevators, get that manufacturer's position on a change of ownership in writing before the lender asks.
Buying a door, elevator or dock company
Thirty-five loans financed a change of ownership, 12.9% of the industry, at a median of $607,500 and a median rate of 9.75%. The companies that change hands tend to be established service businesses whose owners are retiring, and the buyers are often a manager from inside the company or a competitor expanding its territory. The buyer is paying for the service book and the dealer rights, so the diligence should test both: renewal rates on maintenance agreements, how many are cancellable on notice, and the manufacturer's consent.
SBA requires an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan cannot exceed it. The buyer injects at least 10% of total project costs; a seller note counts toward up to half of that only on full standby for the life of the loan, and SBA prohibits an earnout to the seller. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, which helps when the seller's relationships with property managers and plant engineers need handing over. From 1 October 2026 the purchase must show 1.25x debt service coverage on historical results. See buyer industry experience requirements.
Buildings, vans and parts
Thirty-five SBA 504 loans went to the industry, at a median of $650,000, as many as went to acquisitions. Door and dock companies need showrooms and warehouse space for large, bulky stock; riggers need yards for cranes and trailers. 504 finances owner-occupied real estate with typically 50% from a bank, 40% from the CDC and 10% from the borrower, and the business must occupy at least 51% of an existing building. See SBA 7(a) vs 504.
Service vans, cranes and parts inventory are the other assets. Vans and truck-mounted cranes have active used markets, so they are the easiest to value. Parts inventory for particular makes of door operators or elevator controllers is worth much less to anyone but the company that stocks it, so lenders give it little weight. A company with a large receivables book from commercial customers may do better with a line alongside the term loan; see lines of credit for equipment service companies.
Preparing the file
Start from the SBA list: business tax returns for 2–3 years, a P&L and balance sheet, 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 building equipment contractor, add:
- Revenue split between service agreements, repair calls and new installation
- A schedule of maintenance agreements: customer, start date, term, annual value
- Dealer or distributor agreements, and any change-of-control terms in them
- Licenses held, and which employees hold them
- A receivables aging by customer, with retainage separate
- Vehicle and crane list with liens
SBA requires debt service coverage of at least 1.15x, and 1.0x globally including the owners. Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and matches the file against the 278 lenders in its book that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- What does NAICS 238290 cover?
- Building equipment contractors other than electrical, plumbing and HVAC: elevator and escalator contractors, overhead door and gate installers, automatic door companies, loading-dock equipment installers, conveyor installers, and millwrights and machinery riggers.
- How big are SBA loans to building equipment contractors?
- The median 7(a) loan from October 2023 through June 2026 was $200,000, and the middle half ran from $82,350 to $500,000. Thirty-eight loans, 14% of the total, were $1 million or more.
- Do service contracts help me get an SBA loan?
- Yes. Contracted maintenance and inspection revenue is the most predictable cash flow in the trade, and lenders read it as the base the debt can rely on. Show the agreements by customer with terms, value and renewal history.
- What happens to my door dealer agreement if I sell?
- That depends on the agreement. Many let the manufacturer end the appointment or require its consent on a change of ownership. A lender financing the purchase will treat that consent as a condition of closing.
- What does it cost to buy a building equipment company with SBA?
- The 35 acquisition loans in the period had a median of $607,500 at a median rate of 9.75%. The buyer injects at least 10% of total project costs, and most deals of that size need an independent business valuation.