SBA lenders approved 705 7(a) loans to other computer related services firms (NAICS 541519) from October 2023 to June 2026, about $361 million from 149 lenders. The median loan was $185,000, above the national $150,300, at a median rate of 10.5%. Acquisitions ran above the national share, 11.2% of loans at a median of $950,000, while start-ups were only 3.8%. With few hard assets, approval rests on cash flow: how much revenue recurs under contract, how concentrated the client list is, and how much depends on the owner.
| Measure | Other Computer Related Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 705 | 162,355 |
| Median loan | $185,000 | $150,300 |
| Middle half of loans | $100,000 – $487,700 | $50,000 – $500,000 |
| Loans of $1 million or more | 13.2% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 79 (11.2%) | 16,849 (10.4%) |
| Median acquisition loan | $950,000 | $693,000 |
| Lenders that made these loans | 149 | 1,648 |
| SBA 504 loans (real estate, equipment) | 33 | 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
- 705 (Oct 2023 – Jun 2026)
- Lenders that approved one
- 149
- Median loan
- $185,000 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- Acquisitions
- 79 loans (11.2%), median $950,000
- Start-ups
- 3.8% of loans
What SBA lenders approved in this code
NAICS 541519 is the catch-all for computer services that are not programming, systems design or data-center management. In practice it holds managed-service providers that run a client's network and help desk for a monthly fee, firms that install hardware and software, computer disaster-recovery providers, and value-added resellers that bundle equipment with setup and support. From FY2024 through June 2026 these businesses took 705 SBA 7(a) loans worth $360,967,600, from 149 lenders. Cancelled loans are excluded.
The spread is wide. The middle half of loans ran from $100,000 to $487,700, but the top tenth started at $1,419,320, and 93 loans (13.2%) were $1 million or more. Acquisitions account for much of that top end: the 79 change-of-ownership loans had a median of $950,000, more than five times the median loan overall.
| Figure | Other computer related services | National comparison | Reading |
|---|---|---|---|
| Median loan | $185,000 | $150,300 | Somewhat larger than the typical SBA loan |
| Middle half of loans | $100,000 to $487,700 | Working capital and small purchases at the low end | |
| Loans of $1 million or more | 93 (13.2%) | Many are firms buying other firms | |
| Median rate at approval | 10.5% (middle half 9.5% to 11.5%) | 10.25% | Slightly above national: a cash-flow credit with little collateral |
| Fixed-rate share | 9.1% | Nearly all variable, so payments move with the base rate | |
| Acquisitions | 79 loans (11.2%), median $950,000 at 9.75% | 10.4% of loans | Buyers are active; purchase loans price lower than the rest |
| Start-ups | 3.8% of loans | Lenders rarely fund a new IT shop | |
| SBA Express | 30.6% of loans | Smaller needs on the lender's own credit process | |
| SBA 504 | 33 loans, median $708,000 | A few firms buying the building they work from |
The acquisition loans priced lower than the industry as a whole, at a median of 9.75% against 10.5%. Loan size is part of the reason: 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 typical purchase loan sits under a tighter ceiling than the typical loan in this code. For current pricing across lenders, see SBA loan rates.
Three businesses under one code
A lender reading a 541519 file first works out which kind of business it is, because the same revenue figure means very different things in each. Many firms are a mix, and the lender will want revenue and gross profit split by line.
| Revenue stream | How lenders read it | What they ask for |
|---|---|---|
| Managed services (monthly per-user or per-device fees) | The strongest revenue in the code: it recurs, and it is what an acquisition price is really paying for | Contract list with monthly value, term, renewal date and notice period; churn over the last few years |
| Projects and installation | Real but lumpy; a good year may not repeat | Revenue by year and by client; backlog of signed work |
| Hardware and license resale | Large revenue, thin margin; it inflates sales without adding much to cash flow | Gross profit by line; vendor terms and any reseller authorizations |
| Disaster recovery and hosting | Recurring, but tied to equipment and data-center costs | Equipment list, colocation or facility lease, capital spending history |
The practical consequence is that lenders underwrite gross profit and cash flow, not top-line revenue. A reseller with revenue of 10,000 and gross profit of 1,500 is a smaller business, to a lender, than a managed-service firm with revenue of 3,000 and gross profit of 1,800. Presenting the split yourself, before a lender has to ask, keeps the file from being marked down to its weakest reading.
Lenders value an IT services firm on the revenue that recurs under contract. Say how much of yours does, and prove it.
What lenders worry about in IT services
- Contracts that can walk. Many managed-service agreements run month to month or allow termination on short notice. A long client history helps, but lenders give more weight to signed terms. See customer concentration and debt.
- Concentration. One client providing a large share of gross profit is a common reason a lender reduces the loan or asks for more equity.
- The owner as the business. In a small firm the owner is often the lead engineer and the only salesperson. Lenders want to see technicians who hold client relationships and a process that does not live in one head.
- Vendor dependence. Reseller margins and certifications depend on vendor programs that can change terms, and some authorizations do not transfer to a new owner.
- Liability. A breach at a client can land on the firm that managed the network. Lenders commonly ask for professional and cyber liability coverage.
- Receivables. Project and hardware revenue is billed on terms, so cash lags earnings. Lenders read the AR aging for slow payers.
Collateral is thin in this industry: some equipment, receivables and goodwill. SBA lenders can approve a loan that business assets do not fully cover, but they must take the collateral available, which can include a lien on an owner's home; see SBA personal residence collateral. Every owner of 20% or more personally guarantees the loan.
Buying an IT services firm with an SBA loan
At 11.2% of loans, acquisitions are a larger part of this industry than of the SBA program generally, and the median purchase loan of $950,000 shows these are established firms with a client base worth paying for, not a single technician's book. SBA's change-of-ownership rules apply in full.
- An equity injection of at least 10% of total project costs. A seller note counts toward half of it only if it is on full standby, with no principal or interest paid, for the life of the SBA loan. See seller notes and SBA's full-standby rule.
- No earnout to the seller. Deals in IT services are often priced on client retention; under SBA the price has to be fixed at closing.
- 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 cannot stay as an owner, officer or employee. Handing over client relationships has to happen inside that window.
- An independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, which most purchases in this code will exceed. The loan cannot exceed the valuation.
- From 1 October 2026, financial due diligence on every change of ownership, a quality of earnings report at $3 million or more excluding real estate, and coverage of 1.25x on historical results.
Client contracts deserve early attention. If the purchase is of assets, or a contract requires consent on a change of control, the buyer needs to know which clients must sign off before the lender will close. See financing an IT services company acquisition and change-of-control consents.
Preparing a file for an IT services loan
Start with SBA's standard list: 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, personal tax returns and a personal financial statement for each owner of 20% or more, and the owner's resume for Form 1919. Bank statements and a use-of-proceeds narrative are optional but help.
For this industry, add what lenders will otherwise ask for in a second round: revenue and gross profit by stream, a contract schedule with monthly recurring value and renewal dates, the top clients' share of gross profit, an AR aging, and a list of staff who hold client relationships. A buyer should add the letter of intent and the target's latest full year of figures, never an older year.
Transparent builds that material into a full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and takes it to the lenders in its book that write SBA 7(a) and 504, 278 of them. Where the firm's receivables would support it, a line of credit for IT services companies can sit beside the term loan. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- What rate do IT services firms get on SBA loans?
- From October 2023 to June 2026 the median rate at approval for NAICS 541519 was 10.5%, against 10.25% nationally, with the middle half between 9.5% and 11.5%. Only 9.1% of loans were fixed-rate. Acquisition loans, which are larger, had a median of 9.75%.
- Can I get an SBA loan with no hard collateral?
- Yes. Most IT services firms have little equipment or real estate, and SBA lenders can approve a loan that business assets do not fully cover. They must take the collateral that is available, which can include a lien on the owner's home, and every 20% owner guarantees the loan.
- Does hardware resale revenue help my loan?
- Less than it appears. Resale revenue carries a thin margin, so lenders look at gross profit and cash flow rather than sales. Split your revenue and gross profit by stream so the recurring part is visible.
- How big are SBA loans to buy an IT services company?
- The 79 acquisition loans in this code had a median of $950,000 at a median rate of 9.75%. SBA 7(a) loans go up to $5 million, and a purchase needs an equity injection of at least 10% of total project costs.
- Can the seller of an IT firm stay on to transfer clients?
- Only as a consultant, for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. The seller cannot remain an owner, officer or employee after a complete change of ownership.