Industry data
Financing for remodeling contractors: what the loan data shows
4,981 SBA 7(a) loans went to remodeling contractors recently, at a median of $90,000. The lenders that make them, the terms they write, and what underwriters look at.
4,981 SBA 7(a) loans went to remodeling contractors in the most recent fiscal years, at a median of $90,000 over 10 years. 26.6% went to new or under-two-year-old businesses, and the most active lender was The Huntington National Bank.
What a remodeling contractor loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Residential remodelers | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 4,981 | 214,102 |
| Median loan | $90,000 | $150,000 |
| 25th - 75th percentile | $35,000 - $195,000 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.75% | 10.25% |
| Share to new businesses | 26.6% | 33.6% |
| Charge-off rate, FY2010-19 | 11.9% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run smaller than average. The median of $90,000 is 40% below the $150,000 national median. Smaller loans price higher under the SBA spread caps, so budget for a rate above the headline range.
- Startup share is about average, at 27% against 34% nationally.
- No single lender dominates, but the top three made 39% of these loans, so the shortlist below covers most of the active market.
- Rates run higher here. The median initial rate of 10.75% is 0.50 points above the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
- Lenders have been burned here before. 11.9% of loans to this market from the FY2010-2019 cohorts were charged off, against 7.1% overall. That history is why underwriting in this sector is tighter than the numbers alone would suggest — it is not personal.
What lenders look at in this sector
The highest charge-off rate of any niche on this site. Lenders have been burned by contractors who grew faster than their working capital, so expect scrutiny of your work-in-progress schedule and job costing rather than just your revenue.
Which lenders actually fund remodeling contractors
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to remodeling contractors, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| The Huntington National Bank | 752 | $60,000 | 25% | 10.50% |
| TD Bank | 623 | $75,000 | 22% | 11.50% |
| U.S. Bank | 552 | $30,000 | 24% | 10.24% |
| Manufacturers and Traders Trust Company | 270 | $50,000 | 22% | 11.50% |
| JPMorgan Chase Bank | 258 | $150,000 | 5% | 12.55% |
| United Midwest Savings Bank | 231 | $150,000 | 97% | 10.75% |
| BayFirst National Bank | 207 | $150,000 | 2% | 12.25% |
| Readycap Lending, LLC | 184 | $113,000 | 8% | 11.25% |
| Wells Fargo Bank | 153 | $15,000 | 95% | 13.50% |
| Northeast Bank | 141 | $150,000 | 8% | 10.75% |
Where these businesses borrow
Most active states for remodeling contractors: California (453), New York (432), Ohio (411), Florida (352), New Jersey (246), Pennsylvania (234).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Line of credit | For seasonality and payroll timing | 9.0% - 60.0% APR |
| SBA microloan | If you need under $50,000 | 8.0% - 13.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.