Updated October 15, 2026. Data: U.S. Small Business Administration, 7(a) loan records through June 30, 2026. Next update: when the SBA posts its next quarterly file.
The typical SBA 7(a) loan to HVAC and plumbing contractors was $155,000 in fiscal years 2021 through 2026. Of the loans made from 2010 to 2015 that have since closed, 6.7% were charged off, lower than the 7.2% average for all industries.
The SBA files heating and air-conditioning contractors and plumbers under one industry code, “plumbing, heating and air-conditioning contractors,” so this page covers both trades together. It can’t separate an HVAC shop from a plumbing shop. The same code also includes sprinkler, boiler and some refrigeration installers.
How big a typical loan is
The 7(a) program is the SBA’s main loan program. A bank or other lender makes the loan, and the SBA guarantees part of it, which makes lenders more willing to lend to small firms. Trucks, diagnostic equipment, inventory of parts and equipment, and buying an existing shop are common reasons trades borrow.
- Middle half of loans: $55,800 to $429,100.
- 50% of loans were $150,000 or less.
- 48% went through SBA Express, a faster version with less paperwork.
- 24% went to businesses two years old or younger, or not yet open.
- Typical term: 10 years. Typical starting rate: 9.75%.
Lenders usually ask for proof of business insurance before a loan closes, especially when a vehicle, equipment or a building secures it. If you’re shopping for coverage, see HVAC contractor insurance or the insurance section of our plumbing business guide.
| Fiscal year | Loans | Median loan |
|---|---|---|
| 2021 | 715 | $250,000 |
| 2022 | 744 | $150,000 |
| 2023 | 1,004 | $150,000 |
| 2024 | 1,357 | $150,000 |
| 2025 | 1,406 | $200,000 |
| 2026 | 781 | $200,000 |
Fiscal year 2026 runs through June 30, 2026, the date of the latest SBA file.
How often loans were charged off
We looked at the 3,308 loans to HVAC and plumbing contractors approved from fiscal 2010 to 2015 that have since closed, either paid off or charged off. Of those, 223 (6.7%) were charged off. Across all industries the rate was 7.2%. We used older loans because most newer loans are still being repaid, so their outcomes aren’t known yet.
What “charged off” means here. A charge-off is when the lender and the SBA write off what’s left of a loan as uncollectible. It is not the same as a default or a business failure. Some borrowers miss payments and later catch up. Some businesses close but repay in full, and some sell or refinance. A charge-off also says nothing about why the loan went bad. Use these rates to compare industries, not to predict what will happen to one business.
What paying it back looks like
At the typical recent rate of 9.75% over 10 years, a $155,000 loan costs about $2,027 a month. Rates and terms vary with the lender, the loan size and what the money buys. Loans for real estate can run 25 years.
For licensing and startup steps, see how to start an HVAC business and how to start a plumbing business.
Typical loan size in each state
Loan sizes vary a lot from place to place. Among states with at least 25 recent loans, the typical loan was largest in North Carolina ($300,000), Arizona ($283,450) and Texas ($275,400), and smallest in Maine ($50,000), Hawaii ($50,000) and New Hampshire ($81,500). Bigger loans usually mean the money went to buying real estate or an existing business.
Click a column to sort. Each state links to that state’s guide to small business loans. *Charge-off rates are shown only for states with at least 50 closed loans. States with fewer than 25 recent loans are left out.
| State | Loans, FY2021-26 | Median loan | Charged off, FY2010-15 loans* |
|---|---|---|---|
| U.S. | 6,007 | $155,000 | 6.7% |
| Alabama | 35 | $264,000 | too few |
| Arizona | 162 | $283,450 | 6.7% |
| Arkansas | 32 | $133,900 | too few |
| California | 675 | $210,000 | 9.5% |
| Colorado | 192 | $253,000 | 7.2% |
| Connecticut | 95 | $120,000 | too few |
| Florida | 535 | $245,000 | 11.5% |
| Georgia | 106 | $264,500 | too few |
| Hawaii | 25 | $50,000 | too few |
| Idaho | 67 | $100,000 | too few |
| Illinois | 185 | $150,000 | 4.6% |
| Indiana | 129 | $152,900 | 8.8% |
| Iowa | 26 | $135,000 | too few |
| Kansas | 46 | $179,950 | too few |
| Kentucky | 72 | $150,000 | too few |
| Louisiana | 38 | $176,500 | too few |
| Maine | 30 | $50,000 | too few |
| Maryland | 93 | $150,000 | too few |
| Massachusetts | 196 | $100,000 | 7.0% |
| Michigan | 219 | $122,800 | 2.1% |
| Minnesota | 137 | $150,000 | 3.1% |
| Missouri | 91 | $250,000 | 5.8% |
| Nebraska | 32 | $275,000 | too few |
| Nevada | 71 | $150,000 | too few |
| New Hampshire | 60 | $81,500 | too few |
| New Jersey | 181 | $150,000 | 12.3% |
| New Mexico | 28 | $150,000 | too few |
| New York | 354 | $150,000 | 8.9% |
| North Carolina | 120 | $300,000 | 8.0% |
| Ohio | 337 | $100,000 | 4.6% |
| Oklahoma | 50 | $137,500 | too few |
| Oregon | 100 | $100,000 | 6.0% |
| Pennsylvania | 259 | $150,000 | 4.3% |
| South Carolina | 68 | $228,000 | too few |
| Tennessee | 61 | $150,000 | too few |
| Texas | 454 | $275,400 | 8.1% |
| Utah | 85 | $216,000 | 6.0% |
| Virginia | 66 | $208,350 | too few |
| Washington | 174 | $140,250 | 2.8% |
| West Virginia | 34 | $182,500 | too few |
| Wisconsin | 125 | $250,000 | 2.3% |
Before you borrow
- Set up the business first. Lenders lend to a business, not just to you. An LLC also keeps business debts separate from your personal ones in most cases. See how to set up an LLC.
- Compare loan types. SBA loans are one option among several. See the main types of business loans, or open your state’s business-loans guide from the table above.
- Get insured. Have quotes ready so insurance doesn’t hold up closing. See HVAC contractor insurance or the insurance section of our plumbing business guide.
- See the bigger picture. For all industries, see SBA loan statistics.
Starting a HVAC and plumbing business?
Compare business insurance quotes from Simply Business. Need to form your company first? Form your LLC with ZenBusiness.
We may earn a commission if you use this link. It doesn’t change what you pay, and it doesn’t affect the data on this page.
How we counted
- Source: U.S. Small Business Administration, 7(a) loan-level records for fiscal years 2010 through 2026, as of June 30, 2026.
- Typical loan: the median approved amount for loans approved in fiscal 2021 through June 30, 2026. Approved amounts can differ from what was actually paid out, and canceled loans are included.
- Charge-off rate: loans approved in fiscal 2010-2015 that were charged off, divided by those loans that were either paid in full or charged off. Loans still being repaid or canceled are left out.
- Industry: the industry code the lender recorded for the borrower. Codes can be wrong or outdated for some loans.
- State: where the project is located. U.S. figures also include Puerto Rico and other territories. States with fewer than 25 recent loans are left out of the state table.
- Monthly payment is an illustration using the median rate and term, with equal monthly payments. It isn’t a quote.
Sources
Cite this data
Reporters and bloggers may use these numbers and charts. Please credit StartBusinessByState and link to this page.
Source: StartBusinessByState, “What It Costs to Finance an HVAC or Plumbing Business,” https://startbusinessbystate.com/hvac-plumbing-business-loans/ (updated October 15, 2026).
FAQ
How much do HVAC and plumbing businesses borrow from the SBA?
The median 7(a) loan to HVAC and plumbing contractors was $155,000 in fiscal 2021-2026, across 6,007 loans. The middle half ranged from $55,800 to $429,100.
How often do HVAC and plumbing loans go bad?
6.7% of 7(a) loans to HVAC and plumbing contractors made in 2010-2015 were charged off, against 7.2% for all industries. A charge-off isn’t the same as a default or a business failure.
What is a charge-off?
The lender and the SBA write off the unpaid balance as uncollectible. It usually comes after a long period of missed payments, but it is not the same as a default or a business closing.
What's the monthly payment on a typical HVAC and plumbing loan?
About $2,027 a month for $155,000 at 9.75% over 10 years. Your rate and term will differ.
Where is this data from?
The U.S. Small Business Administration’s public 7(a) loan records, which list every loan with its amount, industry, state and status.
Last updated October 15, 2026 by StartBusinessByState.