Small Business Loans & Financing · Reviewed

Live Oak Bank (HVAC & Plumbing Contractor Loans)

America's #1 SBA lender with a dedicated HVAC and plumbing contractor team

★ 4.7 / 5|From SBA 7(a) rates priced at Prime + a negotiated margin (variable)|Small Business Loans & Financing

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Overview

Live Oak Bank, founded in 2008 and headquartered in Wilmington, NC, is consistently ranked the #1 SBA 7(a) lender in the United States by dollar volume. Critically for HVAC contractors, Live Oak staffs a specialized Service Contractors lending team with dedicated bankers who underwrite HVAC, plumbing, electrical, and restoration contractor loans.

HVAC owners most commonly use Live Oak SBA 7(a) and SBA 504 loans for business acquisitions, real estate purchases, partner buyouts, and large equipment packages. Because Live Oak is a true depository bank and a Preferred SBA Lender (PLP), it can underwrite and close SBA loans in-house without sending to the SBA for approval.

APRs are typically pegged to Prime + a margin and far lower than online alternatives.

Key Features

Industry underwriters

Understand HVAC gross margins, service contract revenue, and technician economics.

25-year amortizations

On owner-occupied commercial real estate.

In-house PLP

No second-stage SBA approval delay.

Bundle financing

Real estate, equipment, working capital, and goodwill into a single SBA 7(a) package.

Equipment lending

Divisions for deals that do not fit SBA criteria.

Succession support

Business valuation and planning for retiring HVAC owners.

Pros & Cons

Pros

+Lowest cost of capital among common HVAC financing options
+True industry specialization in service contractors
+Up to 25-year terms dramatically improve cash flow
+Strong at business acquisitions and partner buyouts

Cons

−SBA closings take weeks to months, not hours
−Heavy documentation burden
−Collateral and personal guarantee required
−Not suited for emergency funding needs

Best For These Industries

HVAC & Plumbing
plumbing-contractors
Electrical
service-trades
business-acquirers
commercial-real-estate-buyers

Live Oak Bank (HVAC & Plumbing Contractor Loans) Comparisons

Live Oak Bank (HVAC & Plumbing Contractor Loans) vs Relay for HVAC
A head-to-head comparison of Live Oak Bank (HVAC & Plumbing Contractor Loans) and Relay for hvac contractors.
Live Oak Bank (HVAC & Plumbing Contractor Loans) vs Crest Capital for HVAC
A head-to-head comparison of Live Oak Bank (HVAC & Plumbing Contractor Loans) and Crest Capital for hvac contractors.
Live Oak Bank (HVAC & Plumbing Contractor Loans) vs Affiniti for HVAC
Live Oak Bank (HVAC & Plumbing Contractor Loans) vs Affiniti for hvac — the direct head-to-head.
Live Oak Bank (HVAC & Plumbing Contractor Loans) vs National Funding for HVAC
Live Oak Bank (HVAC & Plumbing Contractor Loans) vs National Funding for hvac — the direct head-to-head.
Live Oak Bank (HVAC & Plumbing Contractor Loans) Alternatives for HVAC
The best alternatives to Live Oak Bank (HVAC & Plumbing Contractor Loans) for hvac contractors.

Alternatives to Live Oak Bank (HVAC & Plumbing Contractor Loans)

Bluevine

★ 4.3

Fast, flexible business lines of credit up to $250K for small contractors

Fintech lender offering fast, online business lines of credit up to $250,000 with approval in minutes, geared toward small contractors including HVAC shops needing flexible working capital.

From Simple interest rates from 6.2% (approx. 20%-50% APR)Read review →

OnDeck

★ 4.2

Fast online term loans and lines of credit built for HVAC and other small contractors

Online small business lender (part of Enova International) offering term loans up to $400K and lines of credit up to $200K with same-day funding and an explicit HVAC contractor vertical.

From Term loan APRs from 35.4%; line of credit APRs from 39.9%Read review →

Funding Circle