Is the SBA 7(a) Loan Program Available to Construction Companies?
One of the most common questions construction company owners have about SBA lending is a straightforward one: does it actually apply to them? The answer is yes, and it has for a long time.
AC Surety sat down with Capital Bank to get a direct answer on which SBA loan products are available to construction companies and what owners and borrowers should understand going in.
The SBA 7(a) Program Is Open to Construction Borrowers
The SBA 7(a) loan program is available to construction companies. SBA lenders have historically included construction businesses as a core part of their lending portfolio, and that remains true today. Whether you are looking for fixed asset financing, working capital, or an acquisition loan, the 7(a) program can accommodate construction company borrowers across those use cases.
This is meaningful for an industry where conventional lending does not always fit the irregular cash flow cycles, equipment needs, and project-based revenue patterns that are common in construction. The SBA 7(a) program provides a path to capital that many construction owners may not realize is available to them.
Who Else the Program Serves
Beyond construction, the SBA 7(a) program has recently expanded to include food producers and food suppliers as eligible borrowers, adding to a portfolio that has long served manufacturers and other small business sectors. For construction companies, this context is worth knowing: the program is designed for the kinds of businesses that drive real economic activity, and construction has always been a central part of that.
What This Means for Construction Owners
If you are a construction company owner who has assumed SBA lending was not an option for your business, or who has only looked at conventional financing in the past, it is worth having a direct conversation with an SBA lender to understand what is available. Fixed asset purchases, working capital needs, business acquisitions, and partner buyouts are all eligible uses under the 7(a) program.
This is part of an ongoing series where AC Surety sits down with trusted professionals from banking, law, and accounting to answer the questions contractors are actually asking.