SBA lenders approved 988 7(a) loans to site preparation contractors between October 2023 and June 2026, $357,150,200 from 223 lenders. The median loan was $100,000, below the national $150,300, and 57.6% went through SBA Express. But the top of the range is heavy: the 90th percentile was $861,140 and 9.6% of loans were $1 million or more. Acquisitions were 6.1% of loans, against 10.4% nationally, at a median of $1,228,600. Start-ups were only 5.9%. Lenders underwrite the equipment, the seasonal cash cycle and the few customers who supply the work.
| Measure | Site Preparation Contractors | All industries |
|---|---|---|
| SBA 7(a) loans approved | 988 | 162,355 |
| Median loan | $100,000 | $150,300 |
| Middle half of loans | $50,000 – $285,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 9.6% | 12.9% |
| Median rate at approval | 10.49% | 10.25% |
| Middle half of rates | 9% – 11.3% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 60 (6.1%) | 16,849 (10.4%) |
| Median acquisition loan | $1,228,600 | $693,000 |
| Lenders that made these loans | 223 | 1,648 |
| SBA 504 loans (real estate, equipment) | 141 | 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
- 988 (Oct 2023 – Jun 2026)
- Median loan
- $100,000 (national $150,300)
- Loans of $1 million or more
- 95 (9.6%)
- Median rate at approval
- 10.49% (national 10.25%)
- Acquisitions
- 60 loans (6.1%), median $1,228,600
- SBA 504 loans
- 141, median $673,000
Two kinds of borrower in one set of figures
Site preparation contractors (NAICS 238910) clear, grade and excavate land, dig foundations and trenches, move earth, demolish structures and prepare pads for building. From FY2024 through June 2026 SBA lenders approved 988 7(a) loans to them, $357,150,200 in total, from 223 lenders. The median loan supported 3 jobs.
The figures describe two different borrowers. One is the owner-operator with a skid steer, a mini excavator and a dump trailer, borrowing 100,000 or less for a machine or working capital; that borrower explains the $100,000 median and the 57.6% of loans that went through SBA Express. The other is a contractor running crews and a fleet of excavators, dozers and haul trucks, borrowing for iron, a yard or another company. That borrower explains why the 90th percentile reached $861,140 and why 95 loans, 9.6% of the total, were $1 million or more.
| Figure | Site preparation | What it says |
|---|---|---|
| Median loan | $100,000 | Two-thirds of the national $150,300 |
| Middle half of loans | $50,000 to $285,000 | Mostly single machines and working capital |
| 90th percentile | $861,140 | Fleets, yards and acquisitions |
| Loans of $1 million or more | 95 (9.6%) | A heavy top end for a trade with a small median |
| Median rate | 10.49% (middle half 9% to 11.3%) | Slightly above the national 10.25% |
| Fixed-rate share | 16.2% | Most loans float |
| SBA Express | 57.6% of loans | The small end of the trade |
| Start-ups | 5.9% of loans | Few new dirt contractors borrow through SBA |
| Franchises | None | No franchise loans in the period |
| Acquisitions | 60 loans (6.1%), median $1,228,600 at 9.5% | Twelve times the industry median |
| SBA 504 | 141 loans, median $673,000 | Yards, shops and long-life equipment |
Equipment is both the collateral and the cost
Unlike most small trades, a site contractor has real collateral: machines with a resale market. That helps the loan, and a lender will usually want an appraisal that states both fair market value and orderly liquidation value, lending against the second. See OLV versus FMV. SBA 7(a) maturities for equipment run up to 10 years, or 15 if the equipment's useful life supports it, which suits heavy iron that lasts.
The same machines are the business's largest ongoing cost. Tracks, undercarriages, engines and eventually replacement units consume cash every year. Contractors often buy equipment with bonus depreciation, which makes taxable income look thin; lenders add depreciation back to cash flow, but a careful underwriter then subtracts what it realistically costs to keep the fleet running. A contractor whose add-backs assume the fleet never needs replacing will get a lower number than expected. See maintenance capex.
Many site contractors already carry equipment notes, often several, with liens on specific machines. A lender will map every one of them in a debt schedule before deciding whether to refinance them or lend around them. Refinancing existing debt with a 7(a) loan requires the new payment to be at least 10% lower and the debt to have been current for the last 12 months. For a single machine, dedicated equipment financing is sometimes simpler than SBA; see equipment financing vs SBA 7(a).
Seasons, bids and a few large customers
Dirt work follows the weather and the building cycle. In northern states frozen ground shuts down excavation for part of the year, and wet seasons stop grading anywhere. Revenue comes in projects, won by bid, and a contractor's year can hinge on two or three large jobs from the same developers or general contractors. A lender looks at the business through that lens.
| What a lender examines | Why it matters for site work |
|---|---|
| Monthly bank deposits across two years | Shows whether payments are covered through the frozen or wet months |
| Backlog of signed work | Next season's revenue, and how much of it is already committed |
| Revenue by customer | One developer or general contractor can be most of the year's work |
| AR aging and retainage | Progress billing and retainage slow collections on larger jobs |
| Work-in-progress schedule | Shows jobs billed ahead of the work, and costs incurred but not yet billed that may never be collected |
| Bonding capacity | Public and larger private work requires it, and the surety reads the same statements |
Customer concentration deserves particular attention. A site contractor that grades lots for one homebuilder is exposed to that builder's pace of starts, and a slowdown there is felt immediately. Lenders do not decline concentration outright, but they want to know the relationship's history and what would replace it. See customer concentration and debt.
Buying a site contractor: priced like a fleet
Only 60 loans, 6.1% of the total, financed a change of ownership, against 10.4% nationally. But their median was $1,228,600, twelve times the industry's median loan, at a median rate of 9.5%. Buying a site contractor means buying a fleet, a yard, trained operators and the seller's standing with developers and general contractors, all at once.
The equipment changes the SBA math. SBA requires an independent business valuation when the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan for the purchase cannot exceed it. In an equipment-heavy company much of the price is backed by appraised iron, so a smaller share is goodwill and the lender has collateral to lean on. The standard rules still apply: at least 10% equity for a complete change of ownership; a seller note counting toward up to half of it only on full standby for the life of the loan; and no earnout. From 1 October 2026, under SOP 50 10 8.1, a change of ownership must show 1.25x coverage on historical results, financial due diligence is required on every change of ownership, and a quality of earnings report is required at $3 million or more excluding real estate.
The buyer's experience matters more than in most trades. Lenders want someone who can estimate a job, run operators and keep equipment utilized, and a seller who introduces the buyer to every regular customer during the consulting period, which runs up to 12 months, or up to 24 months from 1 October 2026. See financing an excavation company acquisition.
In an excavation acquisition the appraisal carries the loan's collateral, and the backlog carries its cash flow. Lenders want both on the table early.
Yards, shops and SBA 504
The trade recorded 141 SBA 504 loans with a median of $673,000. A site contractor needs a place to park and repair heavy equipment and store fill and pipe, and owning the yard is common. SBA 504 finances owner-occupied real estate and long-life equipment, 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. A 7(a) loan can buy real estate too, over up to 25 years, and can combine the yard with equipment and working capital. See SBA 7(a) vs 504.
Preparing a site contractor's SBA file
Start from 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, and personal tax returns and a personal financial statement for each owner of 20% or more. For site work, add:
- An equipment list with year, make, model, hours and any lien on each unit
- Quotes or appraisals for equipment being bought
- A backlog report and a work-in-progress schedule for open jobs
- Revenue by customer for the last full year, and an AR aging with retainage
- Bonding letters, if the business bids bonded work
Once the documents are in, Transparent builds the lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day. For a fleet contractor the file often goes beyond SBA: the book holds 278 lenders that write SBA 7(a) and 504 and 244 that write equipment, and a seasonal working capital need may belong on a line instead; see lines of credit for excavation contractors. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- How big are SBA loans to excavation and site prep contractors?
- Usually small, sometimes very large. The median 7(a) loan from October 2023 to June 2026 was $100,000, but the 90th percentile was $861,140 and 95 loans, 9.6%, were $1 million or more, mostly for fleets, yards and acquisitions.
- Can I use an SBA loan to buy heavy equipment?
- Yes. 7(a) maturities for equipment run up to 10 years, or 15 if the equipment's useful life supports it. Lenders usually want quotes or an appraisal and lend against orderly liquidation value. For a single machine, dedicated equipment financing can be simpler.
- Will a lender count depreciation as cash flow?
- Lenders add depreciation back, but a careful underwriter also allows for what it costs to maintain and replace the fleet. A contractor whose cash flow only works if the equipment never wears out will see a lower number than the tax return suggests.
- How do lenders handle winter slowdowns?
- They look at two years of monthly deposits to see whether the business covers its payments through slow months, and at the backlog signed for the next season. A contractor that plans working capital for winter reads better than one that borrows short-term in a hurry.
- Why are site contractor acquisitions so large?
- Because the buyer is purchasing the fleet, the yard and the crews together. The median acquisition loan was $1,228,600, twelve times the industry's median loan. Appraised equipment backs much of that price, which reduces the goodwill a lender must finance.