SBA loans for other personal and household goods repair and maintenance

What SBA lenders approved for repair shops

Other personal and household goods repair and maintenance (NAICS 811490) is the catch-all for shops that fix what people own: bicycles, motorcycles, pleasure boats, jewelry and watches, musical instruments, and similar goods, when the shop is mainly a repairer rather than a retailer. These shops took 496 SBA 7(a) loans from FY2024 through June 2026, worth $118,399,600, from 120 lenders.

The industry's shape is set by size. Three quarters of loans are $250,000 or less, the top of SBA's second rate tier, and the 90th percentile of $499,000 sits just under the $500,000 ceiling for SBA Express loans. A repair shop's borrowing is mostly a van, a bench of tools, a lift or hoist, some parts inventory and working capital.

Why small loans cost more

SBA caps variable 7(a) rates on a sliding scale: the base rate plus 6.5% for loans of $50,000 or less, plus 6% from $50,001 to $250,000, plus 4.5% from $250,001 to $350,000 and plus 3% above $350,000. Three quarters of this industry's loans are $250,000 or less, where the cap leaves lenders the most room, and a small loan costs a lender nearly as much to underwrite and service as a large one. That is the most likely reason the median here is 10.5% against 10.25% nationally, and why the middle half of rates runs up to 11.5%. See SBA maximum interest rates and current SBA loan rates.

Acquisitions show the other side. At a median of $414,000 they sit in a tighter tier, and their median rate was 9.7%. A borrower choosing between a small loan now and a larger, combined loan later should compare rates tier by tier, not just the headline. SBA Express, which carried 35.9% of loans, also carries only a 50% guaranty, against 85% for standard 7(a) loans of $150,000 or less and 75% above that; that gives lenders a reason to price Express loans toward the top of the range. See SBA 7(a) vs SBA Express.

What lenders look at in a repair shop

SBA requires debt service coverage of at least 1.15x, and 1.0x globally once the owners' personal debts are included. Most shops in this industry are the owner at the bench with two or three people, so the lender's first question is what the business earns after paying the person who does the skilled work. A shop with cash flow of 150 against proposed payments of 110 clears 1.25x; paying a technician to replace an owner's unpaid hours can erase that. See buyer salary in acquisition DSCR.

• The technician. Watchmaking, instrument repair and marine engine work take years to learn. If one person holds the skill, the lender treats that person as the business, and may ask about key-person life insurance. See key person life insurance.
• Seasonality. Bicycle, motorcycle and boat shops earn most of their year between spring and early fall. Monthly results show whether winter covers its payments.
• Customer property. A shop holding customers' boats, bikes or jewelry carries liability for them. Lenders expect insurance that covers goods in the shop's care.
• Parts and retail inventory. Where the shop also sells parts or goods, inventory can be a large asset; lenders value it well below cost, commonly at roughly half of cost for a borrowing base. See inventory advance rates.
• Records. Work orders and a point-of-sale system that reconcile to the tax returns make a small shop's file credible. Lenders lend on the returns.

A shop whose revenue depends on one skilled person should say so plainly and show who else can do the work. Lenders find it either way.

Buying a repair shop

Acquisitions were 45 loans, 9.1% of the industry against 10.4% nationally, at a median of $414,000. That is several times the size of the industry's typical loan, which suggests purchases of established shops, some with property or a franchise territory; franchises were 17.3% of loans. The buyer injects at least 10% of total project costs, and a seller note counts toward half of it only on full standby for the life of the SBA loan. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation.

A repair shop's goodwill is the seller's reputation and skill. The seller cannot remain an owner, officer or employee, but may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. Lenders favor buyers who already do the work: a bicycle mechanic buying a bike shop reads very differently from an investor who will hire one. See buyer industry experience requirements and buying from a retiring owner. From 1 October 2026 every change of ownership also needs financial due diligence and 1.25x debt service coverage on historical results.

Real estate and equipment

The industry took 42 SBA 504 loans at a median of $426,500. A boat or motorcycle shop needs yard space, bays and zoning that allows the work, and owners who can buy that property often do. 504 finances owner-occupied real estate, typically 50% from a bank, 40% from the CDC and 10% from the borrower, and the borrower must occupy at least 51% of an existing building. See SBA 7(a) vs 504.

For equipment alone, a 7(a) loan can run up to 10 years, or 15 if the equipment's useful life supports it. An equipment lender can finance a lift, hoist or specialized machine against the machine instead, leaving the SBA loan for working capital or a purchase. See equipment financing vs SBA 7(a).

Preparing a repair shop's file

SBA's standard list applies: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more, all of whom guarantee the loan. An owner's resume supports SBA Form 1919. An acquisition adds the target's latest full year of figures and the letter of intent.

For a repair shop, add monthly revenue for at least two years to show the season, a split between repair labor and parts or retail sales, an inventory list if the shop sells goods, an equipment list, proof of insurance covering customers' property, and the lease or deed. Transparent builds those into a financing model, lender presentation, blind teaser and underwriting memo in a day, and sends the file to the 278 lenders in its book that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower. For related trades see appliance repair and electronic and precision equipment repair.