SBA Loans for HVAC Business Owners: Every 7(a) and 504 Loan to the Trade, FY2010 to FY2026
- Primary data
- SBA 7(a) and 504 FOIA loan-level files (as of 2026-09-30); Census County Business Patterns 2023
- Data period
- FY2010 to FY2026 (October 2009 to September 2026)
- Latest release used
- 2026-09-30
- Next release
- Not announced; SBA posts these files with quarter-end as-of dates (latest 2026-09-30)
- Geography
- United States (states, DC and territories)
- Sources
- 17 (14 Tier 1)
In fiscal 2026, lenders approved 951 SBA 7(a) loans ($457.4 million) and 88 SBA 504 loans to plumbing and HVAC contractors (NAICS 238220), per SBA FOIA loan data as of September 30, 2026. The median 7(a) loan was $225,000. Of SBA loans for HVAC business owners approved FY2010 to FY2019, 6.5% were charged off, versus 7.2% for all 7(a) loans.
Fiscal 2026 brought 951 SBA 7(a) loans to plumbing and HVAC contractors, below the 1,215 peak of FY2024
Loan counts to NAICS 238220 roughly doubled between FY2010 and FY2024, then fell in FY2025 and again in FY2026, a smaller drop than the 7(a) program as a whole.
Lenders approved 951 SBA 7(a) loans to NAICS 238220 borrowers in fiscal 2026, worth $457.4 million in gross approvals (SBA 7(a) FOIA file as of 2026-09-30).
That count is 2.12 times the 448 loans approved in FY2010, and 20.2% below the 1,192 loans approved in FY2025.
The whole 7(a) program fell further: all-industry 7(a) approvals dropped from 63,954 in FY2025 to 48,528 in FY2026, a decline of 24.1%.
Because the trade fell less than the program, NAICS 238220 reached 1.96% of all 7(a) loans in FY2026, its highest share in the FY2010 to FY2026 series.
7(a) and 504 approvals, cancelled loans removed, FY2010 to FY2026
Source: U.S. Small Business Administration, 7(a) and 504 FOIA loan-level files as of 2026-09-30; analysis by HVAC Business Brokers Research Desk.
| Fiscal year | 7(a) loans | 7(a) gross approval | Median 7(a) loan | Mean 7(a) loan | 504 loans | 504 SBA/CDC approval | Share of all 7(a) loans (%) | SBA Express share of 7(a) loans (%) |
|---|---|---|---|---|---|---|---|---|
| FY2010 | 448 | $76,994,300 | $50,000 | $171,862 | 68 | $24,289,000 | 1.12 | 57.6 |
| FY2011 | 543 | $108,052,900 | $75,000 | $198,992 | 47 | $16,136,000 | 1.19 | 64.5 |
| FY2012 | 583 | $108,946,100 | $50,000 | $186,872 | 70 | $29,845,000 | 1.50 | 71.0 |
| FY2013 | 505 | $95,221,100 | $58,500 | $188,557 | 53 | $18,748,000 | 1.25 | 64.8 |
| FY2014 | 593 | $112,387,800 | $60,000 | $189,524 | 60 | $23,856,000 | 1.29 | 69.0 |
| FY2015 | 730 | $153,533,400 | $55,000 | $210,320 | 61 | $24,421,000 | 1.32 | 68.9 |
| FY2016 | 777 | $179,997,200 | $79,000 | $231,657 | 61 | $26,222,000 | 1.37 | 65.5 |
| FY2017 | 834 | $209,773,800 | $100,000 | $251,527 | 68 | $34,384,000 | 1.49 | 64.5 |
| FY2018 | 822 | $215,593,200 | $100,000 | $262,279 | 75 | $34,657,000 | 1.52 | 61.1 |
| FY2019 | 688 | $225,309,900 | $100,000 | $327,485 | 69 | $35,003,000 | 1.51 | 59.2 |
| FY2020 | 618 | $257,506,100 | $150,000 | $416,677 | 97 | $63,271,000 | 1.69 | 54.9 |
| FY2021 | 619 | $358,190,100 | $275,000 | $578,659 | 105 | $65,171,000 | 1.37 | 45.4 |
| FY2022 | 653 | $320,867,500 | $150,000 | $491,374 | 87 | $69,846,000 | 1.55 | 53.0 |
| FY2023 | 921 | $362,120,800 | $150,000 | $393,182 | 95 | $65,579,000 | 1.78 | 56.1 |
| FY2024 | 1,215 | $477,507,000 | $150,000 | $393,010 | 89 | $69,686,000 | 1.94 | 50.3 |
| FY2025 | 1,192 | $561,364,300 | $200,000 | $470,943 | 117 | $95,175,000 | 1.86 | 42.0 |
| FY2026 | 951 | $457,378,800 | $225,000 | $480,945 | 88 | $65,112,000 | 1.96 | 45.7 |
Fiscal year runs October 1 to September 30. Cancelled approvals removed. 504 dollars are the SBA/CDC portion only. FY2026 is complete in the file dated 2026-09-30.
Source: [1][2][3] U.S. Small Business Administration; U.S. Small Business Administration; U.S. Small Business Administration
NAICS 238220: The federal industry code for plumbing, heating, and air-conditioning contractors. The Census Bureau's 2022 NAICS description covers establishments installing and servicing plumbing, heating and air-conditioning equipment, including HVAC contractors, duct work, mechanical contractors, furnace installation, refrigeration systems and fire sprinkler installation. SBA files do not separate HVAC firms from plumbers, so every count here is plumbing and HVAC combined.
For an owner, the count says SBA-backed credit to the trade held up better in FY2026 than SBA lending as a whole, even with fewer loans than in the two prior years.
How big SBA loans for HVAC business owners are, and why the average misleads
The typical loan is small and has grown fast: the median 7(a) loan went from $50,000 in FY2010 to $225,000 in FY2026, while a minority of multi-million-dollar loans pulls the mean far above it.
The median 7(a) loan to NAICS 238220 was $225,000 in FY2026, 4.5 times the $50,000 median in FY2010 (nominal dollars).
The mean FY2026 loan was $480,945, 2.1 times the median, because loans run up to the $5,000,000 7(a) ceiling set in 13 CFR 120.151.
Across FY2010 to FY2026, 77.9% of the 12,692 7(a) loans to the trade were $350,000 or less; for FY2022 to FY2026 the share was 71.9%.
Loans over $1,000,000 grew from 8.3% of all FY2010 to FY2026 loans to 11.5% of FY2022 to FY2026 loans, while loans of $50,000 or less fell from 34.7% to 24.1%.
Gross approval, nominal dollars, FY2010 to FY2026
Source: U.S. Small Business Administration, 7(a) and 504 FOIA loan-level files as of 2026-09-30; analysis by HVAC Business Brokers Research Desk.
| 7(a) loan size | Loans FY2010 to FY2026 | Share FY2010 to FY2026 (%) | Loans FY2022 to FY2026 | Share FY2022 to FY2026 (%) |
|---|---|---|---|---|
| $50,000 or less | 4,409 | 34.7 | 1,188 | 24.1 |
| $50,001 to $150,000 | 3,190 | 25.1 | 1,296 | 26.3 |
| $150,001 to $350,000 | 2,290 | 18.0 | 1,064 | 21.6 |
| $350,001 to $1,000,000 | 1,753 | 13.8 | 816 | 16.5 |
| $1,000,001 to $5,000,000 | 1,050 | 8.3 | 568 | 11.5 |
Gross approval is the approved loan amount, not the amount disbursed. Cancelled approvals removed.
Source: [1][2] U.S. Small Business Administration; U.S. Small Business Administration
SBA Express, the faster processing route, accounted for 48.9% of FY2022 to FY2026 loans to the trade, down from 57.6% in FY2010. The median FY2026 loan carried a 9.5% initial interest rate and a 120-month term.
For an owner, the median is the better guide to what peers borrow; the mean is pulled up by a small group of large loans.
Ohio contractors take SBA loans at 7.4 times the Mississippi rate
Scaled by the number of plumbing and HVAC establishments, SBA borrowing is concentrated in the Midwest and Mountain West and thin across the Deep South.
Across the 50 states and DC, contractors in NAICS 238220 took 5,385 SBA 7(a) and 504 loans in FY2022 to FY2026, or 48.4 loans per 1,000 establishments counted by the Census Bureau in 2023 (County Business Patterns 2023, 111,207 establishments).
That is 9.7 loans per 1,000 establishments per year.
Ohio ranks first at 93.9 loans per 1,000 establishments (279 loans), followed by Nevada at 78.1, New Hampshire at 74.7 and Michigan at 74.4.
Mississippi ranks last at 12.7 (9 loans), with Louisiana at 16.0 and Alabama at 19.4.
By raw count, California led with 676 loans, then Florida with 488, Texas with 366 and New York with 309; Texas's rate of 40.8 per 1,000 is below the U.S. rate of 48.4.
7(a) plus 504 loans divided by 2023 Census establishments in NAICS 238220
Source: SBA 7(a) and 504 FOIA files as of 2026-09-30; U.S. Census Bureau County Business Patterns 2023; analysis by HVAC Business Brokers Research Desk.
Show all 51 rows
| Rank | State | 7(a) loans FY2022 to FY2026 | 504 loans FY2022 to FY2026 | Total SBA loans | NAICS 238220 establishments 2023 | Loans per 1,000 establishments | Loans per 1,000 establishments per year | Under 20 loans |
|---|---|---|---|---|---|---|---|---|
| 1 | OH | 274 | 5 | 279 | 2,970 | 93.9 | 18.78 | |
| 2 | NV | 61 | 10 | 71 | 909 | 78.1 | 15.62 | |
| 3 | NH | 51 | 7 | 58 | 776 | 74.7 | 14.94 | |
| 4 | MI | 191 | 7 | 198 | 2,661 | 74.4 | 14.88 | |
| 5 | WA | 149 | 11 | 160 | 2,242 | 71.4 | 14.28 | |
| 6 | MN | 103 | 19 | 122 | 1,816 | 67.2 | 13.44 | |
| 7 | UT | 72 | 25 | 97 | 1,443 | 67.2 | 13.44 | |
| 8 | CO | 163 | 12 | 175 | 2,620 | 66.8 | 13.36 | |
| 9 | HI | 21 | 5 | 26 | 403 | 64.5 | 12.90 | |
| 10 | WV | 26 | 0 | 26 | 406 | 64.0 | 12.80 | |
| 11 | CT | 77 | 7 | 84 | 1,318 | 63.7 | 12.74 | |
| 12 | ID | 55 | 2 | 57 | 904 | 63.1 | 12.62 | |
| 13 | AZ | 134 | 24 | 158 | 2,567 | 61.6 | 12.32 | |
| 14 | MA | 157 | 28 | 185 | 3,069 | 60.3 | 12.06 | |
| 15 | OR | 75 | 3 | 78 | 1,337 | 58.3 | 11.66 | |
| 16 | CA | 557 | 119 | 676 | 11,686 | 57.8 | 11.56 | |
| 17 | WI | 98 | 11 | 109 | 1,944 | 56.1 | 11.22 | |
| 18 | DC | 2 | 0 | 2 | 37 | 54.1 | 10.82 | yes |
| 19 | VT | 15 | 1 | 16 | 303 | 52.8 | 10.56 | yes |
| 20 | FL | 438 | 50 | 488 | 9,353 | 52.2 | 10.44 | |
| 21 | IN | 96 | 6 | 102 | 2,008 | 50.8 | 10.16 | |
| 22 | PA | 206 | 3 | 209 | 4,154 | 50.3 | 10.06 | |
| 23 | NJ | 169 | 3 | 172 | 3,454 | 49.8 | 9.96 | |
| 24 | KY | 64 | 0 | 64 | 1,379 | 46.4 | 9.28 | |
| 25 | RI | 18 | 4 | 22 | 494 | 44.5 | 8.90 | |
| 26 | NY | 295 | 14 | 309 | 7,061 | 43.8 | 8.76 | |
| 27 | DE | 13 | 2 | 15 | 344 | 43.6 | 8.72 | yes |
| 28 | IL | 151 | 22 | 173 | 4,070 | 42.5 | 8.50 | |
| 29 | AK | 11 | 0 | 11 | 264 | 41.7 | 8.34 | yes |
| 30 | MD | 78 | 3 | 81 | 1,986 | 40.8 | 8.16 | |
| 31 | TX | 360 | 6 | 366 | 8,966 | 40.8 | 8.16 | |
| 32 | MO | 71 | 6 | 77 | 1,915 | 40.2 | 8.04 | |
| 33 | SD | 10 | 6 | 16 | 401 | 39.9 | 7.98 | yes |
| 34 | KS | 39 | 0 | 39 | 1,028 | 37.9 | 7.58 | |
| 35 | MT | 22 | 4 | 26 | 712 | 36.5 | 7.30 | |
| 36 | ND | 7 | 5 | 12 | 336 | 35.7 | 7.14 | yes |
| 37 | WY | 6 | 5 | 11 | 315 | 34.9 | 6.98 | yes |
| 38 | NM | 20 | 4 | 24 | 691 | 34.7 | 6.94 | |
| 39 | ME | 23 | 4 | 27 | 781 | 34.6 | 6.92 | |
| 40 | SC | 57 | 0 | 57 | 1,685 | 33.8 | 6.76 | |
| 41 | NE | 26 | 1 | 27 | 837 | 32.3 | 6.46 | |
| 42 | OK | 48 | 0 | 48 | 1,592 | 30.2 | 6.04 | |
| 43 | TN | 55 | 0 | 55 | 1,899 | 29.0 | 5.80 | |
| 44 | GA | 82 | 7 | 89 | 3,101 | 28.7 | 5.74 | |
| 45 | NC | 97 | 6 | 103 | 3,973 | 25.9 | 5.18 | |
| 46 | AR | 29 | 0 | 29 | 1,145 | 25.3 | 5.06 | |
| 47 | IA | 22 | 5 | 27 | 1,108 | 24.4 | 4.88 | |
| 48 | VA | 52 | 10 | 62 | 2,765 | 22.4 | 4.48 | |
| 49 | AL | 30 | 2 | 32 | 1,647 | 19.4 | 3.88 | |
| 50 | LA | 26 | 0 | 26 | 1,623 | 16.0 | 3.20 | |
| 51 | MS | 9 | 0 | 9 | 709 | 12.7 | 2.54 | yes |
State is the borrower state in the SBA file. Establishments are Census County Business Patterns 2023 employer establishments. Rates for states with under 20 loans move a lot with a few loans.
Source: [2][3][6] U.S. Small Business Administration; U.S. Small Business Administration; U.S. Census Bureau
For an owner, a high state rate means local lenders already know the trade's SBA files; a low rate means fewer local comparisons, not that loans are unavailable.
Fifteen lenders hold 57.3% of the trade's recent 7(a) loans
Of 471 lenders with at least one loan to the trade in FY2022 to FY2026, the top 15 account for 57.3% of the loans, and they split into high-volume small-loan lenders and lenders that write fewer, larger loans.
The Huntington National Bank holds 546 SBA 7(a) loans to NAICS 238220 approved in FY2022 to FY2026, 11.1% of the total.
U.S. Bank, National Association holds 379 (7.7%), Live Oak Banking Company 298 (6.0%) and TD Bank, National Association 293 (5.9%).
The lenders differ in loan size: TD Bank's median loan to the trade was $75,000 with 95.9% SBA Express, while Live Oak's median was $350,000 and First Internet Bank of Indiana's was $876,500.
Loan count, FY2022 to FY2026, current holder of the loan
Source: U.S. Small Business Administration, 7(a) and 504 FOIA loan-level files as of 2026-09-30; analysis by HVAC Business Brokers Research Desk.
| Rank | Lender (current holder in SBA file) | 7(a) loans FY2022 to FY2026 | Share of NAICS 238220 7(a) loans (%) | Gross approval | Median loan | SBA Express share (%) |
|---|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 546 | 11.1 | $140,573,200 | $100,000 | 61.7 |
| 2 | U.S. Bank, National Association | 379 | 7.7 | $58,561,400 | $45,000 | 85.8 |
| 3 | Live Oak Banking Company | 298 | 6.0 | $257,718,000 | $350,000 | 31.2 |
| 4 | TD Bank, National Association | 293 | 5.9 | $40,425,500 | $75,000 | 95.9 |
| 5 | JPMorgan Chase Bank, National Association | 195 | 4.0 | $48,300,900 | $200,000 | 92.3 |
| 6 | Manufacturers and Traders Trust Company | 157 | 3.2 | $24,677,200 | $75,000 | 90.4 |
| 7 | BayFirst National Bank | 148 | 3.0 | $29,694,300 | $150,000 | 0.7 |
| 8 | United Midwest Savings Bank National Association | 139 | 2.8 | $42,406,100 | $275,000 | 0.0 |
| 9 | Wells Fargo Bank National Association | 124 | 2.5 | $45,866,000 | $25,000 | 63.7 |
| 10 | Northeast Bank | 124 | 2.5 | $23,224,400 | $150,000 | 0.0 |
| 11 | Newtek Bank, National Association | 115 | 2.3 | $43,490,400 | $350,000 | 18.3 |
| 12 | Readycap Lending, LLC | 100 | 2.0 | $30,475,700 | $163,500 | 0.0 |
| 13 | Zions Bancorporation, National Association | 74 | 1.5 | $17,298,600 | $100,000 | 59.5 |
| 14 | First Internet Bank of Indiana | 70 | 1.4 | $100,584,000 | $876,500 | 37.1 |
| 15 | Bank of America, National Association | 65 | 1.3 | $29,655,600 | $350,000 | 66.2 |
BankName is the lender the loan is currently assigned to, so loans made by merged or sold lenders appear under the successor. Ranked by count; ties broken by dollars.
Source: [2] U.S. Small Business Administration
In the 504 program, 95 certified development companies made at least one loan to the trade in FY2022 to FY2026.
For an owner, the list shows which lenders already book SBA loans to plumbing and HVAC contractors in volume; it is not a ranking of price or service.
Fewer plumbing and HVAC loans are charged off, but each charge-off costs more
On loans approved FY2010 to FY2019, the trade's charged-off share by count is below the 7(a) average, but charged-off dollars per approved dollar are 1.3 times the average, driven by large loans.
Of 6,523 disbursed 7(a) loans to NAICS 238220 approved in FY2010 to FY2019, 424 (6.5%) had been charged off by 2026-09-30, against 7.21% of 478,963 disbursed 7(a) loans across all industries.
Measured in dollars, the picture reverses: gross charge-offs on the trade's loans were $57.4 million on $1.49 billion approved, a 3.86% loss rate, against 2.97% for all 7(a) loans, or 1.3 times the average.
The gap comes from large loans: plumbing and HVAC loans over $1,000,000 charged off at 6.4% (20 of 313), while all 7(a) loans in that band charged off at 3.9%.
At the small end the trade did better: loans of $50,000 or less charged off at 6.6%, against 8.5% for all 7(a) loans.
NAICS 238220 versus all 7(a) loans, status as of 2026-09-30
Source: U.S. Small Business Administration, 7(a) and 504 FOIA loan-level files as of 2026-09-30; analysis by HVAC Business Brokers Research Desk.
| 7(a) loan size | NAICS 238220 loans | NAICS 238220 charged off | NAICS 238220 charged off (%) | All 7(a) loans | All 7(a) charged off (%) |
|---|---|---|---|---|---|
| $50,000 or less | 2,899 | 190 | 6.6 | 160,596 | 8.5 |
| $50,001 to $150,000 | 1,637 | 120 | 7.3 | 112,779 | 8.3 |
| $150,001 to $350,000 | 982 | 60 | 6.1 | 84,492 | 6.9 |
| $350,001 to $1,000,000 | 692 | 34 | 4.9 | 72,984 | 5.2 |
| $1,000,001 to $5,000,000 | 313 | 20 | 6.4 | 48,112 | 3.9 |
Disbursed loans only; status as of 2026-09-30.
Source: [1] U.S. Small Business Administration
| Approval year | NAICS 238220 loans (disbursed) | Charged off | Charged off (%) | Charged-off dollars per approved dollar (%) | All 7(a) loans (disbursed) | All 7(a) charged off (%) | All 7(a) charged-off dollars per approved dollar (%) |
|---|---|---|---|---|---|---|---|
| FY2010 | 448 | 46 | 10.3 | 6.4 | 39,913 | 9.2 | 4.7 |
| FY2011 | 543 | 37 | 6.8 | 8.0 | 45,628 | 6.9 | 3.3 |
| FY2012 | 583 | 35 | 6.0 | 3.5 | 38,889 | 6.3 | 3.0 |
| FY2013 | 505 | 30 | 5.9 | 3.1 | 40,416 | 6.0 | 2.8 |
| FY2014 | 593 | 37 | 6.2 | 4.4 | 45,962 | 6.4 | 2.8 |
| FY2015 | 730 | 38 | 5.2 | 4.3 | 55,421 | 6.9 | 3.0 |
| FY2016 | 777 | 37 | 4.8 | 3.3 | 56,789 | 7.2 | 2.9 |
| FY2017 | 834 | 61 | 7.3 | 2.6 | 56,079 | 7.8 | 3.0 |
| FY2018 | 822 | 58 | 7.1 | 4.3 | 54,195 | 8.1 | 2.8 |
| FY2019 | 688 | 45 | 6.5 | 2.1 | 45,671 | 7.0 | 2.3 |
Loan status as of 2026-09-30. Disbursed = paid in full, charged off, or still open (EXEMPT). Gross charge-off is before any later recovery.
Source: [1] U.S. Small Business Administration
The FY2010 cohort had the highest charged-off share for the trade at 10.3%, and the FY2016 cohort the lowest at 4.8%, against 7.2% for all 7(a) loans that year.
Within the trade, SBA Express loans approved FY2010 to FY2019 charged off at 5.8%, and other 7(a) loans at 7.8%.
For an owner, the data shows that small SBA loans to the trade have failed less often than average, while large ones have failed more often than large loans elsewhere.
The 504 program is a small sideline for the trade, with 6 charge-offs in a decade of loans
SBA 504 loans finance major fixed assets through certified development companies; the trade uses them about one-tenth as often as 7(a) loans.
Lenders and certified development companies approved 1,310 SBA 504 loans to NAICS 238220 in FY2010 to FY2026, with $761.4 million in SBA/CDC approvals and $935.7 million in third-party lender dollars alongside.
The median SBA/CDC portion was $389,000.
Of 632 disbursed 504 loans approved FY2010 to FY2019, 6 (0.95%) had been charged off by 2026-09-30.
The SBA describes 504 loans as long-term, fixed-rate financing for major fixed assets (SBA 504 loans), and 13 CFR 120.931 caps the standard 504 balance at $5,000,000 per borrower, or $5,500,000 per project for small manufacturers and some energy projects.
For an owner, the 504 record is too small to rank states or lenders, but its charge-off history is far lower than the 7(a) record.
The federal limits that shape every loan in this data
Four rules in Title 13 of the Code of Federal Regulations set who counts as small and how large an SBA loan can be.
- Size standard: NAICS 238220 firms qualify as small with average annual receipts of up to $19.0 million (13 CFR 121.201, read 2026-11-02).
- 7(a) ceiling: the maximum for any one 7(a) loan is $5,000,000, and the SBA's guaranteed share to one borrower and affiliates cannot exceed $3,750,000 (13 CFR 120.151).
- Guaranty share: loans of $150,000 or less may carry up to an 85% SBA guaranty, larger loans up to 75% (13 CFR 120.210).
- 504 limit: $5,000,000 standard, $5,500,000 for qualifying manufacturing and energy projects (13 CFR 120.931).
State-by-state findings
- Lenders approved 951 SBA 7(a) loans to NAICS 238220 contractors in fiscal 2026 (October 2025 to September 2026), worth $457.4 million in gross approvals.[2]
- The peak year in the FY2010 to FY2026 series was FY2024, with 1,215 7(a) loans to the trade.[2]
- In FY2026, NAICS 238220 accounted for 1.96% of all SBA 7(a) loans, up from 1.12% in FY2010.[1][2]
- From FY2010 to FY2026 the trade received 12,692 7(a) loans totalling $4.28 billion in gross approvals.[1][2]
- The median 7(a) loan to the trade was $225,000 in FY2026 and $50,000 in FY2010, a 4.5-fold rise in nominal dollars.[1][2]
- The mean 7(a) loan to the trade in FY2026 was $480,945, 2.1 times the median.[2]
- Of FY2022 to FY2026 7(a) loans to the trade, 71.9% were $350,000 or less and 11.5% were over $1,000,000.[2]
- Across the 50 states and DC, the trade took 48.4 SBA loans per 1,000 establishments in FY2022 to FY2026; Ohio led at 93.9 and Mississippi was lowest at 12.7.[2][3][6]
- 471 lenders held at least one FY2022 to FY2026 7(a) loan to the trade, and the top 15 held 57.3% of the loans.[2]
- Of 6,523 disbursed 7(a) loans to the trade approved FY2010 to FY2019, 424 (6.5%) were charged off by 2026-09-30, against 7.21% for all 7(a) loans.[1]
- Charged-off dollars on the trade's FY2010 to FY2019 loans equalled 3.86% of approved dollars, 1.3 times the 2.97% rate for all 7(a) loans.[1]
- Trade loans over $1,000,000 approved FY2010 to FY2019 charged off at 6.4%, against 3.9% for all 7(a) loans of that size.[1]
- Of 632 disbursed 504 loans to the trade approved FY2010 to FY2019, 6 (0.95%) were charged off.[3]
Rankings and ratios we derived
Signature: charged-off share by count, seasoned cohorts
FormulaCHGOFF loans / disbursed loans x 100, approvals FY2010 to FY2019, status as of 2026-09-30
Inputs: fact sheet rows 90, 91 (NAICS 238220); 96, 97 (all 7(a)); derived d10, d11 (fact sheet rows)
Result: 6.5% for NAICS 238220 versus 7.21% for all 7(a) loans, a gap of 0.71 percentage points
By count, plumbing and HVAC loans were charged off slightly less often than the average 7(a) loan.
Limitations: 571 trade loans (8.8%) remain open and can still charge off. The benchmark includes the trade's own loans.
Signature: charged-off dollars per approved dollar
Formulasum of GrossChargeOffAmount / sum of GrossApproval x 100, same cohort
Inputs: fact sheet rows 94, 95 (NAICS 238220); 100, 101 (all 7(a)); derived d12, d13, d14 (fact sheet rows)
Result: 3.86% for NAICS 238220 versus 2.97% for all 7(a), a ratio of 1.3
Measured in dollars, the trade's losses run above average, because its large loans fail more often than large loans elsewhere (6.4% versus 3.9% over $1,000,000, table t6).
Limitations: Gross charge-off is before recoveries from collateral or guarantors, and includes both the guaranteed and unguaranteed portions.
SBA loans per 1,000 establishments by state
Formula(7(a) + 504 loans FY2022 to FY2026 by borrower state) / CBP 2023 NAICS 238220 establishments x 1,000
Inputs: table t3; fact sheet row for CBP state establishments; derived d6, d7, d8 (fact sheet rows)
Result: 48.4 nationally (9.7 a year); Ohio 93.9; Mississippi 12.7; Ohio is 7.4 times Mississippi
SBA borrowing intensity in the trade varies by a factor of 7.4 between the highest and lowest state.
Limitations: Establishments are locations, not firms, and exclude nonemployer contractors; a firm with several locations borrows once.
Growth of the typical loan
Formulamedian 7(a) gross approval FY2026 / median FY2010
Inputs: fact sheet rows 3 and 67; derived d4, d24 (fact sheet rows)
Result: $225,000 / $50,000 = 4.5; FY2026 mean-to-median ratio 2.1
The typical SBA loan to the trade is four and a half times larger than in FY2010 in nominal terms.
Limitations: Not adjusted for inflation; the share of SBA Express loans also changed over the period.
Lender concentration
Formulasum of loans held by the top 15 lenders / all FY2022 to FY2026 7(a) loans to NAICS 238220 x 100
Inputs: table t4; derived d9 (fact sheet rows)
Result: 57.3% of 4,932 loans across 471 lenders
A small group of lenders writes most SBA loans to the trade.
Limitations: The SBA file names the current holder, so acquired lenders' loans appear under the acquirer.
Executive summary
- Lenders approved 951 SBA 7(a) loans worth $457.4 million to NAICS 238220 contractors in fiscal 2026, down 20.2% from 1,192 in FY2025 (SBA FOIA, as of 2026-09-30).
- All 7(a) lending fell 24.1% over the same year, so the trade's share of 7(a) loans rose to 1.96% in FY2026.
- The median 7(a) loan to the trade rose from $50,000 in FY2010 to $225,000 in FY2026; 71.9% of FY2022 to FY2026 loans were $350,000 or less.
- Ohio had 93.9 SBA loans per 1,000 plumbing and HVAC establishments over FY2022 to FY2026, against 48.4 nationally and 12.7 in Mississippi.
- Fifteen lenders hold 57.3% of FY2022 to FY2026 7(a) loans to the trade; The Huntington National Bank holds 11.1%.
- Of FY2010 to FY2019 loans, 6.5% were charged off (all 7(a): 7.21%), but charged-off dollars were 3.86% of approvals (all 7(a): 2.97%).
- Plumbing and HVAC loans over $1,000,000 charged off at 6.4%, against 3.9% for all 7(a) loans of that size.
Questions people ask
How many SBA loans go to HVAC companies?
In fiscal 2026, 951 SBA 7(a) loans and 88 SBA 504 loans went to NAICS 238220 plumbing, heating and air-conditioning contractors (SBA FOIA data as of 2026-09-30). The SBA does not split HVAC from plumbing, so this is the combined trade.
What is the average SBA loan for an HVAC business?
The mean 7(a) loan to NAICS 238220 in FY2026 was $480,945, but the median was $225,000; the median is the better guide because a few loans run up to $5,000,000.
Which banks make the most SBA loans to HVAC contractors?
By FY2022 to FY2026 7(a) loan count, the leaders are The Huntington National Bank (546), U.S. Bank (379), Live Oak Banking Company (298) and TD Bank (293), per the SBA FOIA file, which lists the current holder of each loan.
How often do HVAC SBA loans default?
The SBA file records charge-offs, not defaults. Of 7(a) loans to NAICS 238220 approved FY2010 to FY2019, 6.5% were charged off by 2026-09-30, against 7.21% for all 7(a) loans; by dollars the trade's rate was 3.86% versus 2.97%.
Download the data
Every table in this report is available as a CSV under CC BY 4.0. The fact sheet lists each value with its source URL and access date.
- derived_metrics.csv (CSV)
- fact_sheet.csv (CSV)
- SBA 7(a) and 504 loans to NAICS 238220 contractors by fiscal year, FY2010 to FY2026 (CSV)
- How large SBA 7(a) loans to NAICS 238220 contractors are, by gross approval band (CSV)
- SBA loans to NAICS 238220 contractors per 1,000 establishments, by state, FY2022 to FY2026 (CSV)
- Top 15 lenders by number of SBA 7(a) loans to NAICS 238220 contractors, FY2022 to FY2026 (CSV)
- Charge-offs on SBA 7(a) loans approved FY2010 to FY2019: NAICS 238220 versus all 7(a) loans (CSV)
- Charged-off share by loan size, SBA 7(a) loans approved FY2010 to FY2019 (CSV)
For journalists and researchers
If you cite only a few, cite these
- 951 SBA 7(a) loans ($457.4 million) to NAICS 238220 contractors in fiscal 2026, SBA FOIA as of 2026-09-30.[2]
- Median FY2026 7(a) loan to the trade: $225,000.[2]
- FY2010 to FY2019 approvals: 6.5% charged off by count, 3.86% of dollars charged off, versus 7.21% and 2.97% for all 7(a) loans.[1]
Most quotable statistics
- Lenders approved 951 SBA 7(a) loans worth $457.4 million to U.S. plumbing and HVAC contractors in fiscal 2026 (SBA FOIA data as of September 30, 2026).[2]
- The median SBA 7(a) loan to U.S. plumbing and HVAC contractors was $225,000 in fiscal 2026, up from $50,000 in FY2010.[1][2]
- Plumbing and HVAC contractors made up 1.96% of all SBA 7(a) loans in fiscal 2026, the highest share since at least FY2010.[2]
- 6.5% of SBA 7(a) loans to plumbing and HVAC contractors approved FY2010 to FY2019 were charged off by September 2026, against 7.21% for all 7(a) loans.[1]
- Charged-off dollars on SBA 7(a) loans to plumbing and HVAC contractors approved FY2010 to FY2019 equalled 3.86% of approvals, 1.3 times the 2.97% rate for all 7(a) loans.[1]
- Ohio had 93.9 SBA loans per 1,000 plumbing and HVAC establishments in FY2022 to FY2026, nearly double the U.S. rate of 48.4.[2][3][6]
Press summary
Lenders approved 951 SBA 7(a) loans worth $457.4 million to U.S. plumbing, heating and air-conditioning contractors (NAICS 238220) in fiscal 2026, a 20.2% drop from FY2025 but smaller than the 24.1% fall across all 7(a) lending, according to an analysis of SBA loan-level FOIA records as of September 30, 2026, by the HVAC Business Brokers Research Desk. The median loan to the trade reached $225,000, up from $50,000 in FY2010, and Ohio led the country with 93.9 SBA loans per 1,000 plumbing and HVAC establishments over FY2022 to FY2026, against a national rate of 48.4. Of the trade's 7(a) loans approved FY2010 to FY2019, 6.5% were charged off, below the 7.21% average, but charged-off dollars equalled 3.86% of approvals, 1.3 times the 2.97% average, because large plumbing and HVAC loans failed more often than large loans in other industries.
Suggested headlines
- SBA lenders approved 951 loans to plumbing and HVAC contractors in fiscal 2026
- Typical SBA loan to HVAC and plumbing firms hits $225,000
- HVAC and plumbing SBA loans fail less often, but cost lenders more when they do
- Ohio leads the country in SBA loans per HVAC and plumbing shop
- Fifteen lenders hold 57.3% of SBA loans to the plumbing and HVAC trade
How to cite this report
HVAC Business Brokers. (2026). SBA Loans for HVAC Business Owners: Every 7(a) and 504 Loan to the Trade, FY2010 to FY2026. Retrieved from https://sell-my-hvac-business.com/research/sba-loans-to-hvac-companies/
Reuse license
Data and tables are licensed CC BY 4.0. Attribution: “Source: HVAC Business Brokers, SBA Loans for HVAC Business Owners: Every 7(a) and 504 Loan to the Trade, FY2010 to FY2026” with a link to this page.
Frequently asked questions
How many SBA 7(a) loans went to plumbing and HVAC contractors in FY2026?
951 loans worth $457.4 million in gross approvals, per the SBA 7(a) FOIA file as of 2026-09-30.
How many SBA 504 loans went to the trade in FY2026?
88 loans with $65.1 million in SBA/CDC approvals, per the SBA 504 FOIA file as of 2026-09-30.
What was the median SBA 7(a) loan to the trade in FY2026?
$225,000, up from $200,000 in FY2025 and $50,000 in FY2010.
What share of SBA 7(a) loans to the trade are $350,000 or less?
71.9% of FY2022 to FY2026 loans and 77.9% of FY2010 to FY2026 loans.
Which state has the most SBA loans per plumbing and HVAC establishment?
Ohio, with 93.9 SBA 7(a) and 504 loans per 1,000 establishments in FY2022 to FY2026, against 48.4 for the U.S.
Which state has the most SBA loans to the trade by count?
California, with 676 7(a) and 504 loans in FY2022 to FY2026.
Which lender holds the most SBA 7(a) loans to the trade?
The Huntington National Bank, with 546 loans approved FY2022 to FY2026, 11.1% of the trade's total.
What is the largest SBA 7(a) loan allowed?
$5,000,000 per loan under 13 CFR 120.151, with the SBA's guaranteed share to one borrower capped at $3,750,000.
Do plumbing and HVAC firms qualify as small for SBA loans?
Under 13 CFR 121.201, NAICS 238220 firms count as small with average annual receipts of up to $19.0 million.
Are large SBA loans to the trade riskier than small ones?
In FY2010 to FY2019 approvals, trade loans over $1,000,000 charged off at 6.4% against 3.9% for all 7(a) loans of that size, while trade loans of $50,000 or less charged off at 6.6% against 8.5%.
Reproduce this analysis
Every figure comes from the files below. The scripts that pulled and computed them are kept with the report and can be re-run.
| Dataset | Publisher | Source | Query or filter | Rows used | Retrieved |
|---|---|---|---|---|---|
| SBA 7(a) FOIA loan-level files, FY2010 to FY2019 and FY2020 to present | U.S. Small Business Administration | File or endpoint | NaicsCode = 238220; LoanStatus != CANCLD; ApprovalFY 2010 to 2026. Benchmark: all rows FY2010 to FY2019 with LoanStatus in P I F, CHGOFF, EXEMPT. Companion file FOIA_7a_FY2010_FY2019_asof_260930.csv | 949,395 rows read; 14,448 coded 238220; 12,692 after removing 1,756 cancelled | 2026-11-02 |
| SBA 504 FOIA loan-level file, FY2010 to present | U.S. Small Business Administration | File or endpoint | NaicsCode = 238220; LoanStatus != CANCLD; ApprovalFY 2010 to 2026 | 119,599 rows read; 1,463 coded 238220; 1,310 after removing 153 cancelled | 2026-11-02 |
| County Business Patterns 2023, state and U.S. files | U.S. Census Bureau | File or endpoint | naics = 238220, lfo = '-' (all legal forms), est column | 51 state rows (50 states and DC) summing to 111,207 establishments, equal to the U.S. file | 2026-11-02 |
| eCFR Title 13 sections 120.151, 120.210, 120.931, 121.201 | eCFR, Office of the Federal Register | File or endpoint | Point-in-time XML as of 2026-10-29 for each section | 4 sections | 2026-11-02 |
Data quality and exclusions
- Removed 1,756 cancelled 7(a) approvals and 153 cancelled 504 approvals coded NAICS 238220; cancelled loans stay in the SBA files with status CANCLD.
- Kept 442 undisbursed 7(a) approvals (COMMIT) as approvals; they fall in recent years and are outside the FY2010 to FY2019 charge-off cohorts.
- The 7(a) files spell paid in full as 'P I F' and the 504 file as 'PIF'; both were mapped to paid in full before computing rates.
- NAICS descriptions appear in two spellings (one with a trailing space); loans were selected on the code 238220, not the description.
- 2 rows in the 7(a) files and 433 rows in the 504 file have a blank NAICS code; they cannot be assigned to any industry and stay only in the all-industry benchmark.
- 23 FY2022 to FY2026 loans to borrowers in U.S. territories were left out of the state rate table because CBP state files cover only the 50 states and DC.
- BusinessAge categories change wording across years, so this report does not tabulate business age.
Methodology
Selection: the primary data are the SBA's loan-level 7(a) and 504 FOIA files dated as of 2026-09-30, downloaded once from the SBA open data portal (data.sba.gov, dataset 7a-504-foia) on 2026-11-02. These are the latest files posted on the dataset page. Establishment counts come from Census County Business Patterns 2023 (files posted 2025-06-26), the latest CBP year on the Census file server. Program rules come from the eCFR text of 13 CFR parts 120 and 121, read 2026-11-02.
Inclusion: every loan with NaicsCode 238220 approved FY2010 to FY2026. Cancelled approvals (LoanStatus CANCLD) are removed from all counts and dollar totals. Undisbursed approvals (COMMIT in 7(a), NOT FUNDED in 504) are kept as approvals. Fiscal years run October 1 to September 30.
Charge-off measures use only seasoned cohorts (approved FY2010 to FY2019) and only disbursed loans (paid in full, charged off, or still open). The count measure is charged-off loans divided by disbursed loans. The dollar measure is the sum of GrossChargeOffAmount divided by the sum of GrossApproval. The same rules are applied to every 7(a) loan in the same years as the benchmark.
Conflicts: third-party pages report different SBA figures for the trade, for example a 14.5% default rate on a resolved-loan basis (PeerSense) and 6.7% on closed FY2010 to FY2015 loans (Start Business by State). Those use different periods, denominators and status cuts; this report uses only the SBA files and states each denominator.
State rates: 7(a) plus 504 loans approved FY2022 to FY2026, by borrower state, divided by 2023 CBP employer establishments in NAICS 238220, times 1,000. Loans to borrowers in U.S. territories are excluded from state rates.
Lender table: 7(a) loans approved FY2022 to FY2026, grouped by BankName exactly as written in the SBA file, ranked by count.
All scripts that download, filter and compute these figures are kept with the report (scripts/01_extract.py to 06_report.py) and re-run from the raw files. Last updated 2026-11-02. Published by HVAC Business Brokers (sell my HVAC business); related live research: HVAC business profit margin.
This report presents published data with its limitations. It is not legal, financial or investment advice.
Sources, ranked by quality
Tier 1: primary and official sources (14)
- [1] U.S. Small Business Administration. SBA 7(a) FOIA loan-level file, FY2010 to FY2019 (FOIA_7a_FY2010_FY2019_asof_260930.csv). Approvals FY2010 to FY2019, status as of 2026-09-30. Accessed 2026-11-02.
- [2] U.S. Small Business Administration. SBA 7(a) FOIA loan-level file, FY2020 to present (FOIA_7a_FY2020_Present_asof_260930.csv). Approvals FY2020 to 2026-09-30. Accessed 2026-11-02.
- [3] U.S. Small Business Administration. SBA 504 FOIA loan-level file, FY2010 to present (FOIA_504_FY2010_Present_asof_260930.csv). Approvals FY2010 to 2026-09-30. Accessed 2026-11-02.
- [4] U.S. Small Business Administration. 7(a) and 504 FOIA data dictionary. Field definitions. Accessed 2026-11-02.
- [5] U.S. Small Business Administration. 7(a) and 504 FOIA dataset page, SBA open data portal. File list as of 2026-09-30. Accessed 2026-11-02.
- [6] U.S. Census Bureau. County Business Patterns 2023, state file (cbp23st), posted 2025-06-26. 2023. Accessed 2026-11-02.
- [7] U.S. Census Bureau. County Business Patterns 2023, U.S. file (cbp23us), posted 2025-06-26. 2023. Accessed 2026-11-02.
- [8] U.S. Census Bureau. 2022 NAICS descriptions (2022_NAICS_Descriptions.xlsx), code 238220. NAICS 2022. Accessed 2026-11-02.
- [9] eCFR, Office of the Federal Register. 13 CFR 121.201, small business size standards by NAICS industry (eCFR, current through 2026-10-29). Read 2026-11-02. Accessed 2026-11-02.
- [10] eCFR, Office of the Federal Register. 13 CFR 120.151, statutory limit for total loans to a borrower (eCFR). Read 2026-11-02. Accessed 2026-11-02.
- [11] eCFR, Office of the Federal Register. 13 CFR 120.931, 504 lending limits (eCFR). Read 2026-11-02. Accessed 2026-11-02.
- [12] eCFR, Office of the Federal Register. 13 CFR 120.210, percentage of a loan SBA may guarantee (eCFR). Read 2026-11-02. Accessed 2026-11-02.
- [13] U.S. Small Business Administration. 7(a) loans. Program page read 2026-11-02. Accessed 2026-11-02.
- [14] U.S. Small Business Administration. 504 loans. Program page read 2026-11-02. Accessed 2026-11-02.
Tier 3: journalism and expert commentary (3)
- [15] PeerSense. Plumbing, Heating, and Air-Conditioning Contractors SBA Loans: Rates, Lenders and Data (NAICS 238220). Period not stated. Accessed 2026-11-02.
- [16] Start Business by State. HVAC and plumbing business loans. FY2010 to 2026-06-30. Accessed 2026-11-02.
- [17] sba7a.loans. SBA Loans for HVAC Companies. Undated explainer. Accessed 2026-11-02.