HVAC Companies Can Use SBA 504 Loans to Expand Their Business
From homes and businesses to medical facilities and government offices, heating and cooling is vital for everyone. As as a result, the HVAC industry is booming, with 113,490 businesses nationwide, and a growth rate of almost 3% between 2013 and 2018. Plus, revenues are incredibly high: the HVAC industry as a whole generated a staggering $93 billion in 2018 alone. All this means that it’s a great time for entrepreneurs looking to get in on the action. And, for those who already have an HVAC business and want to expand it, an SBA 504 loan could be a great way to do so.
The Most Common Uses of SBA 504 Loans for HVAC Companies
In general, an SBA 504 loan is designed to help business owners fund the costliest aspects of their business. HVAC firms like SBA 504 loans due to the fact that they offer some of the lowest cost, fully amortizing commercial real estate loans on the market. 504 loans can be used to purchase property on which to build an HVAC company’s facility. It can also be used to purchase an existing building and land, pay for land improvements, and more. However, perhaps most importantly, it can be used to purchase heavy equipment, including freon testers, service vehicles, HVAC/recharge systems, and more.
SBA 504 Alternatives for HVAC Companies
SBA 504 loans are a great choice for a lot of HVAC companies, but they won’t fit the needs of every business. For example, if an HVAC company is looking for working capital financing, an SBA 7(a) loan could be a smarter option. And, if a company wants only a small amount of funds (i.e. less than $50,000), they may want to go with an SBA microloan, which is much easier to qualify for than a 7(a) loan. Other options include SBA express loans, which are offered in amounts of up to $350,000, and conventional business loans, which can be a good option for those who are not eligible for SBA financing.
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