SBA lenders approved 150 7(a) loans to septic tank and related services companies (NAICS 562991) from October 2023 through June 2026, $58,293,700 from 86 lenders. The median loan was $150,000, level with the national $150,300, and the median rate was 9.99%, below the national 10.25%. Acquisitions were 13.3% of loans, above the national 10.4%, at a median of $743,500 and 9.38%. The industry covers septic pumping, portable restroom rental and system installation. Lenders underwrite the vacuum trucks and units as collateral, recurring route revenue, seasonality, licensing, and the company's access to disposal sites.
| Measure | Septic Tank and Related Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 150 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $368,750 | $50,000 – $500,000 |
| Loans of $1 million or more | 10% | 12.9% |
| Median rate at approval | 9.99% | 10.25% |
| Middle half of rates | 8.75% – 11.22% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 20 (13.3%) | 16,849 (10.4%) |
| Median acquisition loan | $743,500 | $693,000 |
| Lenders that made these loans | 86 | 1,648 |
| SBA 504 loans (real estate, equipment) | 4 | 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
- 150 (Oct 2023 – Jun 2026), from 86 lenders
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 9.99% (national 10.25%)
- Acquisitions
- 20 loans (13.3%), median $743,500 at 9.38%
- SBA Express share
- 46.7% of loans
- SBA 504
- 4 loans, median $970,000
Three businesses under one code
NAICS 562991 covers companies that pump and clean septic tanks and cesspools, rent and service portable toilets, and in many cases install and repair septic systems. Plenty of companies do all three, but each earns money differently and a lender reads them separately.
| Line of business | Where the revenue comes from | What the lender underwrites |
|---|---|---|
| Septic pumping and maintenance | Homeowners on a pumping cycle, inspections when homes sell, commercial grease and holding tanks | Customer count, repeat rate, route density, truck condition |
| Portable restroom rental | Construction sites on monthly rentals, special events, agriculture and disaster work | Unit count and utilization, contractor concentration, event seasonality |
| System installation and repair | Failed systems, new homes outside sewer areas, required upgrades | Job-by-job revenue, excavation equipment, licensing, warranty exposure |
Pumping routes and restroom rentals are recurring, and lenders value them the way they value any route business: steady, spread across many customers and hard for a competitor to take quickly. Installation is contracting, lumpier and more exposed to the housing market. A company with mostly recurring revenue will get more credit for the same earnings.
What the approvals show
| Figure | Septic and related services | Reading |
|---|---|---|
| Loans / total / lenders | 150 / $58,293,700 / 86 | Fewer than two loans per lender on average: no dominant specialist |
| Median loan | $150,000 | Level with the national $150,300 |
| Middle half of loans | $50,000 to $368,750 | A truck at the low end, a small route company at the high end |
| 90th percentile | $986,500 | The top tenth stops just short of $1 million |
| Loans of $1 million or more | 15 (10%) | Larger route companies and purchases |
| Median rate (middle half) | 9.99% (8.75% to 11.22%) | Below the national 10.25% |
| Fixed-rate share | 18.7% | Most loans float with the base rate |
| SBA Express | 46.7% | Truck purchases and working capital |
| Start-ups / franchises | 16.7% / 4% | Owner-operators starting with one truck |
| Median jobs supported | 4 | Drivers and a technician or two |
| SBA 504 | 4 loans, median $970,000 | Rare: yards are usually modest or leased |
Two figures describe this market. First, 150 loans came from 86 lenders, fewer than two loans per lender on average, so no small group of specialists dominates and a borrower's own bank is a realistic place to start. Second, acquisitions at 13.3% of loans, above the national 10.4%: established septic and restroom companies change hands regularly, and a founder with no successor selling to an operator with nearby routes is one familiar shape for those deals. The 20 acquisition loans had a median of $743,500 at 9.38%.
Disposal access: the risk underneath the business
A pump truck is only useful if it has somewhere to unload. Septic companies discharge at municipal wastewater treatment plants, at private receiving facilities, or, where the state allows it, by land application under a permit. Each arrangement can change: a treatment plant can stop accepting outside waste, cap volumes or raise its fees, and a land application permit can be tightened or not renewed.
Lenders who know the industry ask about this early, and buyers should too. If the nearest accepting plant closes to haulers, the company's trucks spend hours more on the road per load, and cost rises while revenue stays put. A company with its own permitted disposal site or dewatering facility has an advantage worth documenting; one that depends on a single plant should show how long that arrangement has run and what the alternative would cost.
Show where every load goes and under what permit. Disposal access is part of the collateral a lender cannot see on the balance sheet.
Trucks, units and seasons: the collateral and the cash flow
Vacuum trucks and service trucks for restroom routes are the core collateral. They hold value better than many vehicles because there is a specialized resale market, but condition, tank size and age drive that value, and a lender may order an appraisal at orderly liquidation value. Portable restroom units, hand-wash stations and trailers are collateral too, though worth far less individually. Equipment can be financed within a 7(a) for up to 10 years, or 15 if its useful life supports it, or separately; see equipment financing vs SBA 7(a) and equipment appraisal: OLV and FMV.
Cash flow is seasonal in most of the country. In cold climates, frozen ground slows pumping and stops installation, and restroom rentals for events peak in summer. Construction rentals follow the building cycle. Lenders test debt service on full-year results against SBA's minimum of 1.15x, and 1.0x globally including the owners. A company whose winter months run at a loss should show how it carries payments through them, whether from cash reserves or a line of credit.
Watch for one structural risk: sewer expansion. When a town extends public sewer into a neighborhood, the homes there stop needing pumping. It is slow and visible in advance, and a lender may ask whether any planned projects touch the company's service area.
Buying a septic or portable toilet company
Most of what a buyer pays for is the customer list and the routes, backed by the trucks and units. A lender will ask for the customer list with service history, because a septic customer who pumps every few years is only valuable if the company has the records to remind them. Route density matters as well: customers close together earn more per truck hour.
- Licenses and permits. In many states the pumper or installer license belongs to an individual, often the seller. The buyer, or an employee who stays, needs to hold the required licenses at closing, and disposal permits may need to be transferred or reissued. Lenders will not fund until that is settled.
- Valuation. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation and the loan for the purchase cannot exceed it. Appraising the trucks and units reduces the goodwill the valuation has to support. See the SBA business valuation requirement.
- Equity and the seller. The buyer injects at least 10% of total project costs; a seller note counts toward half of it only on full standby for the life of the loan; 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 is useful when the seller holds relationships with builders, real estate agents and inspectors.
- The October 2026 rules. From 1 October 2026 a change of ownership must show 1.25x debt service coverage on historical results, and financial due diligence is required on every purchase.
Buyers new to the trade should expect questions under SBA Form 1919 about management experience; see buyer industry experience requirements. A buyer adding a neighboring route to an existing company is usually an easier credit, because the combined business can be underwritten on the buyer's own record. See add-on acquisition financing.
Preparing the file
The SBA checklist is the base: 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, and personal tax returns and a personal financial statement for each owner of 20% or more, each of whom personally guarantees the loan. For a septic or restroom company, add:
- Revenue split by pumping, restroom rental and installation, and by month
- The customer list with service dates, and the largest construction and event accounts
- A truck and equipment list: year, tank capacity, mileage, and lienholders; a unit count for restrooms
- Disposal arrangements: which facilities, under what agreements or permits
- Licenses held by the company and by individuals
- For a purchase, the target's latest full year of figures and the letter of intent
Refinancing existing debt with a 7(a) loan requires the new payment to be at least 10% lower and the debt current for the last 12 months, and SBA will not refinance an active merchant cash advance. See refinancing existing debt with a 7(a). Once the documents are in, Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day and takes it to 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
- Can I buy a septic pumping company with an SBA loan?
- Yes. Acquisitions were 13.3% of SBA loans to the industry from October 2023 to June 2026, above the national 10.4%, at a median of $743,500. Expect the lender to require the necessary licenses in the buyer's hands, a business valuation on most purchases, and clarity on disposal arrangements.
- Will an SBA loan finance a vacuum truck?
- Yes. Trucks can be financed within a 7(a) loan for up to 10 years, or 15 if the useful life supports it, and many smaller truck loans go through SBA Express, which 46.7% of loans in this industry used.
- What rate do septic companies pay on SBA loans?
- The median rate at approval was 9.99%, below the national 10.25%, with the middle half from 8.75% to 11.22%. Acquisition loans had a median of 9.38%.
- Why does disposal access matter to a lender?
- Because the company cannot operate without somewhere to discharge what it collects. If a treatment plant stops accepting outside waste or a land application permit is lost, costs rise sharply. Lenders ask where loads go and under what permit.
- Does portable toilet rental count as recurring revenue?
- Construction rentals billed monthly and scheduled service contracts usually do. Event rentals are seasonal and one-off, and lenders weigh them accordingly.