The Ultimate Financing Guide to SBA Trucking Loans
May 08, 2025 | Last Updated on: May 12, 2025
By Lee Huffman
Running a trucking or delivery company takes serious capital. Whether you are buying new trucks, hiring drivers, or expanding your routes, you need reliable financing. SBA loans can help you secure funding with better terms than many traditional loans. They offer a strong option for transportation businesses looking to grow or stabilize. Learn more about SBA trucking loans, including the different loan types, SBA eligibility requirements, how to apply for small business trucking loans, and alternative financing options.
What Are SBA Loans?
SBA loans are small business loans backed by the U.S. Small Business Administration. The SBA does not lend money directly. Instead, it guarantees a portion of the loan through partner lenders.
SBA loans offer:
- Lower interest rates
- Longer repayment periods
- Easier approval if you meet the requirements
The SBA’s support reduces lender risk, which can improve your chances of getting a loan.
Types of SBA Trucking Loans
There are three main types of small business loans for trucking companies through the Small Business Administration (SBA). The type of loan you apply for may vary based on your financial situation and business needs.
SBA 7(a) Loans
SBA 7(a) loans are the most common of the SBA trucking loans. An SBA 7a business loan can cover almost any business expense. For trucking companies, you might use a 7(a) loan to:
- Buy new or used trucks
- Expand your fleet
- Hire more drivers
- Cover operating expenses
Loan amounts can go up to $5 million. Repayment terms for equipment can be up to 10 years, while real estate purchases can be financed for up to 25 years.
SBA CDC/504 Loans
CDC/504 loans focus on significant fixed assets. These loans offer higher loan amounts and terms that match the longer lifespan of the assets backing the loan. A 504 loan involves two lenders: a bank and a Certified Development Company (CDC).
You can use a CDC/504 loan to:
- Buy commercial real estate
- Purchase or upgrade heavy equipment
- Build new facilities
Loan amounts can reach $5.5 million or higher, which makes them ideal for larger purchases (ex: a new fleet of trucks). With repayment terms of 10, 20, or 25 years, you can also spread out your payments over a longer period of time.
SBA Microloans
SBA Microloans are for smaller funding needs and companies with limited revenues or histories. This makes them ideal for startups or small transportation businesses looking for small equipment loans or working capital.
You might use a microloan to:
- Buy a used delivery van
- Cover startup costs
- Pay for licensing and permits
Loan amounts are up to $50,000. With repayment terms of up to 6 years, the monthly payments are more affordable than the larger 7(a) and 504 SBA trucking loans.
How SBA Loans Benefit Transportation Businesses
SBA loans offer flexible financing for transportation companies. Depending on the types of SBA trucking loans you apply for, the loan proceeds can be used to:
- Purchase new or used trucks and trailers
- Expand delivery routes or logistics networks
- Hire and train drivers
- Refinance high-interest debt for better cash flow
- Invest in GPS, fleet management software, or warehouse upgrades
Utilizing these government-backed loans for your trucking business helps your business stay competitive and grow faster.
SBA Loan Eligibility Requirements
To qualify for an SBA loan, your transportation business must meet several requirements:
- Operate as a small business under SBA size standards
- Have a good personal and business credit history
- Show the ability to repay the loan
- Provide a detailed business plan
- Submit financial documents like tax returns, profit and loss statements, and balance sheets
Some industries have extra rules, so check if trucking or logistics businesses in your area have specific guidelines. For more information on this subject, visit SBA.gov.
How to Apply for an SBA Loan
Small business owners should follow these steps when applying for an SBA loan:
- Prepare your paperwork: Gather your business plan, financial statements, tax returns, bank statements, and any legal documents. If your trucking company is an LLC, S-corporation, or C-corporation, lenders may require your articles of incorporation. Partnerships should also be prepared to provide a copy of the partnership agreement.
- Choose the right loan: Decide between a 7(a), CDC/504, or Microloan based on your needs. Consider loan limits, repayment terms, and other factors when comparing loan options.
- Find an SBA-approved lender: Look for banks, credit unions, or nonprofit lenders who work with SBA loans. While the SBA guarantees these loans, they are offered by local and online lenders in your community.
- Complete the application: Fill out the lender’s application forms and SBA-specific documents. Have your financials handy to quickly answer the application questions. Consider scanning your supporting documents so you can easily provide them to your lender during the application and underwriting process.
- Wait for approval: The lender and the SBA will review your application before funding your loan.
Getting an approval can take weeks, so start early and stay organized. Attempt to respond to all requests within 24 hours to keep the loan process moving quickly.
Tips to Improve Your Approval Chances
Getting approved for SBA trucking loans is not automatic. Lenders want to see that you are low-risk, well-prepared, and capable of managing loan repayment. Here’s how you can strengthen your loan application.
Keep Your Credit Score Strong
Your credit score is one of the first things lenders check.
A personal credit score of 680 or higher improves your chances.
Ways to improve or maintain your credit:
- Pay all bills on time, including credit cards, utilities, and loan payments
- Keep your credit card balances low relative to your limits
- Avoid opening too many new credit accounts at once
- Check your credit report regularly for errors and dispute any mistakes
If your credit score is below 680, work on raising it before applying. Even a 20-point boost can make a big difference.
Show Clear and Realistic Financial Projections
Lenders need to see that your business can repay the loan. Strong financial projections build their confidence. Here are five tips for creating effective projections:
- Base your numbers on real historical data when possible
- Be conservative in your revenue estimates
- Include all operating costs, from fuel and maintenance to payroll
- Show how the loan will help you grow revenue or reduce expenses
- Provide a break-even analysis to show when you expect profits
If you are starting a new trucking business, use market research and industry benchmarks to support your projections.
Build a Relationship with Local Lenders
Trust and familiarity matter when applying for SBA trucking loans. Getting to know lenders before you apply can work in your favor. Here’s how to build lender relationships:
- Develop a relationship with your local bank by opening a business checking account and expanding your relationship by opening additional products as needed
- Visit local banks and credit unions to introduce yourself and your business
- Attend SBA networking events or small business seminars
- Ask lenders about their loan requirements and gather advice early
- Keep lenders updated about your business growth, even if you are not yet applying
A lender who knows your story may be more willing to work with you during the application process.
Offer Collateral if Needed
Collateral lowers the lender’s risk. Offering it can strengthen your application, especially if your credit history is not perfect. Four common types of collateral for trucking businesses include:
- Trucks and trailers
- Other business equipment financing
- Real estate owned by the business
- Inventory or accounts receivable
Make sure you know the value of your collateral before offering it. Having recent appraisals or asset lists can help. Even if the SBA loan you seek is “unsecured,” being willing to offer collateral shows lenders you are serious.
Work with SBA Small Business Advisors or Mentors
You don’t have to prepare your application alone. SBA resources can help you build a stronger case for approval. Here’s where to get free or low-cost help:
- Small Business Development Centers (SBDCs) offer one-on-one counseling
- SCORE connects you with retired executives and experienced business mentors
- Women's Business Centers (WBCs) specialize in helping women entrepreneurs
- Veterans Business Outreach Centers (VBOCs) support veteran-owned businesses
Advisors can review your business plan, help you create better financial documents, and guide you through the loan application process. Taking advantage of these resources shows lenders you are committed to doing things right.
Alternative Loan Options
SBA loans are not your only choice for company business loans. Depending on your situation, you might consider other financing options.
Conventional Term Loans
Banks and credit unions offer term loans without SBA backing. These loans can fund truck purchases, repairs, or expansions. However, conventional term loans might have higher interest rates, and qualification can be harder without strong credit. When buying trucks, the bank may require a down payment or gap insurance to protect itself and avoid having too high of a loan-to-value (LTV) ratio.
Business Lines of Credit
A business line of credit gives flexible access to funds when needed. They work well to cover fuel, repairs, payroll, and other short-term costs. Unlike loans, you only pay interest on the money you use. You'll have a set credit limit that can be used multiple times, and as you pay down your balance, you'll unlock additional spending capacity.
Home Equity Line of Credit (HELOC)
If you own a home and have trouble getting approved for SBA trucking loans, you might tap into your home equity with a HELOC. Home equity lines of credit can give business owners lower interest rates than unsecured loans. Plus, you can also use it for personal expenses, such as college tuition, home repairs or remodeling, or buying a new car.
The downside of a HELOC is that your home serves as collateral, which means you could lose your home if you cannot make the monthly payments. Additionally, HELOC interest payments are not tax-deductible on personal income taxes unless you use the money to buy or improve your home. Consult with a tax professional to determine if you can deduct the interest on your business taxes.
The Bottom Line About SBA Trucking Loans
SBA loans can be a smart way to fund and grow your trucking, logistics, or delivery business. There are three primary SBA trucking loan programs, so choose the one that best fits your borrowing needs. In general, SBA loans offer a combination of lower rates, longer terms, and more credit leniency than other loan types. Assess your needs and compare loan options, then prepare your credit and financials to build a strong credit application. The right financing can make a real difference whether you are buying new trucks, expanding operations, or stabilizing your business.
Frequently Asked Questions
Can You Get an SBA Loan for a Trucking Company?
Yes, it is possible to get approved for SBA trucking loans. The SBA approves existing small business owners and aspiring entrepreneurs just starting out. These loans offer competitive interest rates, longer repayment terms than conventional loans, and flexible loan amounts to meet your business needs.
What Credit Score Do You Need for an SBA Loan?
The minimum credit score for SBA trucking loans varies based on the loan type you apply for. SBA 7a and 504 loans have the lowest credit score requirements with a 615 FICO score, while borrowers need at least a 620 FICO to get approved for SBA Microloans.
What is the 20% Rule for SBA?
Businesses may have multiple owners with differing ownership stakes. The Small Business Administration requires that every owner with 20% or more ownership offer a personal guarantee for SBA trucking loans.
What Disqualifies You From Getting an SBA Loan?
SBA loans are open to a wide variety of businesses, but some small business owners and types of businesses are ineligible. Business owners may be denied with low credit scores, too much existing debt, insufficient collateral, a prior bankruptcy, negative taxable income, or a prior violent or financial felony or misdemeanor. Additionally, the SBA trucking loans are not available to certain industries, including gambling, real estate, and "adult" businesses.
Which SBA Loan is Easiest to Get Approved For?
SBA loans are typically easier to get approved for than traditional bank loans. However, the easiest SBA trucking loans are the SBA microloans because they do not require collateral and are available to startups. These loans generally are quicker to get approved for due to their smaller loan amount and less intrusive underwriting process.
