From October 2023 to June 2026, 39 lenders approved 105 SBA 7(a) loans to structural steel and precast concrete contractors, worth $41,725,400. The median loan was $150,000, level with the national $150,300, but 57.1% of loans were SBA Express and the median rate was 10.75% against 10.25% nationally. Acquisitions were rare, 6 loans or 5.7%, at a median of $1,307,500. Lenders decide on the work-in-progress schedule, retainage and general-contractor concentration in the receivables, the surety relationship, and the equipment behind the loan.
| Measure | Structural Steel and Precast Concrete Contractors | All industries |
|---|---|---|
| SBA 7(a) loans approved | 105 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $70,000 – $450,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 8.6% | 12.9% |
| Median rate at approval | 10.75% | 10.25% |
| Middle half of rates | 9.75% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 6 (5.7%) | 16,849 (10.4%) |
| Median acquisition loan | $1,307,500 | $693,000 |
| Lenders that made these loans | 39 | 1,648 |
| SBA 504 loans (real estate, equipment) | 11 | 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
- 105 from 39 lenders (Oct 2023 – Jun 2026)
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 10.75% (national 10.25%)
- SBA Express share
- 57.1% of loans
- Acquisitions
- 6 loans (5.7%), median $1,307,500
- SBA 504
- 11 loans, median $1,189,000
A small-loan market run through SBA Express
This code (NAICS 238120) covers the trades that put up a building's frame: structural steel and metal-building erection, precast concrete panel and deck installation, reinforcing steel placement and miscellaneous iron work. From FY2024 through June 2026 its SBA borrowers took loans that look ordinary on size and unusual on everything else.
| Figure | Steel and precast contractors | National or rule |
|---|---|---|
| Median loan | $150,000 | $150,300 nationally |
| Middle half of loans | $70,000 to $450,000 | |
| 90th percentile | $680,100 | |
| Loans of $1 million or more | 9 (8.6%) | 7(a) goes up to $5 million |
| SBA Express share | 57.1% | Express goes up to $500,000, 50% guaranty |
| Median rate | 10.75% (middle half 9.75% to 11.5%) | 10.25% nationally |
| Fixed-rate share | 16.2% | |
| Start-ups / franchises | 2.9% / none | |
| Acquisitions | 6 (5.7%), median $1,307,500 at 11.13% | 10.4% of loans nationally |
| SBA 504 | 11 loans, median $1,189,000 | Yards, shops and long-life equipment |
More than half the loans were SBA Express. Express lets the lender approve under its own procedures in exchange for a 50% guaranty instead of the 85% or 75% on a standard 7(a), and it is the usual route for a working capital line or a truck and welding-rig loan below $500,000. It is also a likely reason for the rate gap. The median loan here matches the national one, but a lender keeping half the risk of a construction subcontractor tends to price for it, within SBA caps that allow the base rate plus 6% on loans from $50,001 to $250,000. See SBA 7(a) vs SBA Express and SBA loan rates.
How a lender reads an erector's books
An erector's annual P&L says little on its own, because revenue on long jobs is booked as the work progresses. Lenders who lend to specialty contractors go straight to the work-in-progress schedule, the list of open jobs with contract value, cost to date, estimated cost to finish and billings to date, and they compare it with the receivables aging.
| What the lender looks at | Why it matters for steel and precast |
|---|---|
| Underbillings (costs in excess of billings) | Work done but not yet billed. Persistent underbillings suggest cost overruns or billing disputes on a job |
| Overbillings (billings in excess of costs) | Cash collected ahead of the work. It funds the company today but is owed back in labor and steel |
| Gross margin fade on open jobs | Estimated margin shrinking as jobs progress, often from fixed-price bids exposed to steel or cement price moves |
| Retainage receivable | Held back by the general contractor until the job closes out; usually ineligible for a borrowing base and slow to collect |
| Receivables by general contractor | One or two GCs often account for most of the aging, and pay-when-paid clauses tie collection to the owner paying the GC |
| Backlog | Signed work not yet started; the evidence that next year resembles this one |
The pattern lenders want to see is a WIP schedule that ties to the financial statements, margins that hold from bid to completion, and retainage that gets collected rather than aging into disputes. Concentration is judged on general contractors, not jobs: ten projects for one GC are one credit exposure. On a receivables line, lenders commonly cap any single customer at 20% to 25% of eligible receivables, and receivables more than 90 days past invoice typically do not count, which is why retainage-heavy erectors often find a line smaller than their aging. See eligible and ineligible receivables and lines of credit for contractors.
Bonding and bank debt share the same balance sheet
Many erectors working for commercial GCs are required to bond their work, and the surety's capacity depends on working capital and net worth, usually backed by the owners' personal indemnity. That links bonding to borrowing. A term loan that funds equipment out of the balance sheet, or a line drawn to cover slow retainage, changes the numbers the surety reads. Lenders familiar with the trade ask for the surety's letter showing single-job and aggregate capacity, and they prefer structures that leave working capital intact, for example financing a crane over its useful life instead of paying for it from cash.
Talk to the surety before signing a loan: debt that shrinks working capital can shrink bonding capacity, and bonding capacity is the ceiling on backlog.
Cranes, yards and the 504 loans
Erectors carry more hard collateral than most specialty trades: cranes, boom lifts, welding equipment, trucks and trailers, and often a fabrication shop or laydown yard. That shows up in the data. There were 11 SBA 504 loans with a median of $1,189,000, larger than most 7(a) loans in the industry, financing yards, shops and long-life equipment. A 504 borrower must occupy at least 51% of an existing building, or 60% of new construction, and typically puts in 10% (15% for a new business or special-purpose property).
Under 7(a), equipment can be financed for up to 10 years, or 15 if its useful life supports it, and real estate for up to 25 years. Lenders will want an equipment list with serial numbers, hours and liens, and for major pieces an appraisal on an orderly liquidation basis. Some erectors are better served by dedicated equipment lenders for cranes and an SBA loan for the rest; the choice depends on what each lender will advance against used, specialized equipment. See equipment financing vs SBA 7(a), equipment appraisals and SBA 7(a) vs 504.
Why purchases are rare and priced high
Only 6 loans, 5.7% of the total against 10.4% nationally, financed a change of ownership, at a median of $1,307,500 and 11.13%. Buying an erector means buying things that do not transfer with the stock certificate: the surety relationship (the buyer must be bonded on its own indemnity), the contractor license where the state ties it to a qualifying individual, the foremen and certified welders who run the crews, and the safety record that GCs check before inviting a bid.
SBA's rules then shape the structure. The buyer needs an equity injection of at least 10% of project costs; a seller note can cover up to half of it only on full standby for the life of the loan, and a note that pays counts as debt. 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 usually how GC relationships and the bonding introduction are handed over. An independent business valuation is required where the amount financed, less appraised real estate and equipment, exceeds $250,000, and appraised equipment is subtracted before that test, so a small purchase with a large crane fleet can fall under it; either way the purchase loan cannot exceed the valuation. From 1 October 2026 a change of ownership must also show 1.25x coverage on historical results and complete financial due diligence. See SBA 7(a) acquisition loans and seller notes on standby.
Preparing a steel or precast contractor's file
SBA's core 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 returns and a personal financial statement for every owner of 20% or more, each of whom guarantees the loan. An erector's file should also carry:
- A current WIP schedule that ties to the balance sheet, and the schedules for the last two year-ends
- An AR aging by general contractor with retainage shown separately
- Backlog: signed contracts not yet started, with the GC for each
- The surety's capacity letter
- An equipment list with year, hours, liens and estimated value
- Contractor licenses, and the owner's resume supporting SBA Form 1919
Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, with the WIP, retainage and backlog laid out the way a construction lender reads them. Transparent's book holds 278 lenders that write SBA 7(a) and 504 and 244 that write equipment, which matters in a trade where the crane and the working capital may belong with different lenders. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- Why do steel erectors pay more than the national median SBA rate?
- Partly the loan mix. The median rate here was 10.75% against 10.25% nationally, and 57.1% of loans were SBA Express, where the lender keeps half the risk and prices for it. SBA's caps still apply: up to the base rate plus 6% from $50,001 to $250,000, and plus 3% above $350,000.
- Does retainage count toward a line of credit?
- Usually not. Retainage is held until the job closes out, and receivables more than 90 days past invoice are typically ineligible for a borrowing base. Lenders look at it as a slow asset, not working capital.
- Can I finance a crane with an SBA loan?
- Yes. A 7(a) loan can finance equipment for up to 10 years, or 15 if its useful life supports it, and 504 can finance long-life equipment. A dedicated equipment lender is sometimes the better fit for a single large piece.
- Will an SBA loan affect my bonding capacity?
- It can. Sureties size capacity on working capital and net worth, so debt that uses up working capital can reduce it. Structure the loan with the surety's view in mind.
- Can I buy a steel erection company with an SBA loan?
- Yes, though it is uncommon: 6 loans from October 2023 to June 2026, at a median of $1,307,500. The buyer must bring its own bonding and licensing, an equity injection of at least 10%, and a plan to keep the crews and GC relationships.