SBA Loan for Construction Business | $3.69M Facility Acquisition for Division 10 Contractor

The company had scaled faster than its facility could support. Division 10 commercial construction requires substantial material staging: toilet partitions, lockers, shelving systems, bathroom fixture packages, fire safety equipment, and signage all need to be received, inspected, organized by project, and staged for delivery and installation on a schedule that aligns with each general contractor's project timeline. At 4,200 square feet of mixed-use office and warehouse space, the company had long since exceeded the capacity of its primary location. Four separate rented storage facilities and mobile storage units deployed to active job sites were absorbing the overflow, but the fragmented model created logistics inefficiency, added cost, and prevented the company from staging large-scale projects that required centralized material coordination.

The constraint was not just storage. The company's growth engine depended on estimators who could review project drawings and specifications from a bid board service and produce detailed, project-specific estimates for general contractors. Each additional estimator represented additional bid volume, additional wins at the company's established close rate, and additional revenue. The office could not seat more estimators. The company was leaving bid requests uncovered because it did not have the personnel capacity to respond, and it could not add personnel capacity because it did not have the space. Revenue through three quarters had already reached $4.1 million with more than $7 million in contracted backlog, and the ownership could see the path to 20% or greater annual revenue growth if the facility constraint were removed.

The financing itself required careful structuring. The company was young, founded just three years earlier, but its revenue trajectory was steep and its backlog was documented. The proforma had to demonstrate that a company with only one full operating year of mature revenue could support a $3.7 million facility acquisition on a 25-year term. The SBA owner-occupancy requirements had to be satisfied for the new property. The growth assumptions had to be tied to specific, documentable inputs: bid volume, win rate, revenue per estimator, and the market demand driving the construction pipeline in the company's operating region.

• 4,200 SF facility at capacity, four rented storage locations, and mobile units at job sites creating logistics inefficiency and added cost
• Unable to hire additional estimators due to office space constraints, leaving inbound bid requests uncovered and revenue uncaptured
• $4.1M in YTD revenue and $7M+ in contracted backlog demonstrating demand the current facility could not support
• Young company with steep growth trajectory required proforma-driven underwriting tied to documented bid economics and market demand
• Division 10 material staging for commercial and institutional projects required consolidated warehouse capacity the current operation did not have

Cornovus Capital structured the $3,696,000 SBA loan for construction business facility acquisition as a 100% financing facility with no equity injection. The SBA 7(a) structure covered the full property acquisition, working capital, SBA guarantee fee, and all closing costs, preserving the company's operating liquidity during the transition to a new facility while simultaneously allowing it to invest in the estimator hires and operational expansion the larger space would support. The 25-year fully amortizing term at WSJ Prime plus 2.50% produced a monthly payment that the company's current revenue could service before any contribution from the growth the facility would unlock.

The credit package required Cornovus Capital to build and present a comprehensive growth narrative for a company that had been operating at full revenue capacity for only one year. The proforma documented the company's bid economics: the volume of inbound bid requests from general contractors, the percentage of requests the company was currently unable to cover due to estimator constraints, the historical win rate on bids submitted, and the average project value. The $7 million contracted backlog provided near-term revenue visibility that most construction companies at this stage cannot demonstrate. Market demand documentation covered the regional commercial construction pipeline, population growth projections driving institutional and commercial development, and the regulatory requirements that guarantee consistent demand for Division 10 products including fire safety equipment, ADA-compliant fixtures, and building code-mandated signage and accessories.

The company's ownership structure and operating history required specific presentation. The co-founders' combined experience, 16 years of Division 10 product sales, installation, and project management paired with demonstrated business scaling capability, was documented alongside the strategic decision to use the company's first year as a relationship-building and operational development period before scaling. The rapid revenue trajectory from formation to $3 million and then to a $4.1 million pace within three years reflected deliberate execution, not speculative growth. Cornovus Capital coordinated the SBA authorization, appraisal, environmental review, title work, and closing to deliver the facility acquisition on the timeline the company's growth plan required.

• Structured 100% SBA 7(a) financing at $3,696,000 with no equity injection, covering acquisition, working capital, SBA fee, and closing costs
• Built proforma documenting bid economics, estimator capacity constraints, historical win rates, and average project values to support the growth projection
• Presented $7M+ contracted backlog as near-term revenue visibility supporting the facility acquisition
• Documented regional market demand including population growth, commercial construction pipeline, and regulatory-driven Division 10 product requirements
• 25-year fully amortizing term with monthly debt service sized to current revenue capacity
• Coordinated SBA authorization, appraisal, environmental, title, and closing on the acquisition timeline

The $3,696,000 SBA loan for construction business facility acquisition closed at 100% financing with no equity injection. The company acquired a commercial property that consolidated its operations from a 4,200-square-foot mixed-use space and four rented storage locations into a single facility capable of supporting the office, warehouse, staging, and logistics requirements of a Division 10 contractor operating at $4 million and growing. The rented storage locations were eliminated. Material staging for commercial and institutional projects moved to a centralized operation. The office capacity to seat additional estimators was immediately available.

The facility acquisition removed the binding constraint on a company that had already demonstrated it could generate revenue faster than its physical space could accommodate. The ownership's growth projection of 20% revenue increase in Year 1 post-acquisition, followed by 15% to 20% annual growth thereafter, was grounded in documented bid economics: more estimators covering more inbound bid requests at an established win rate, with each additional project generating revenue at the company's historical average ticket. The $7 million contracted backlog at the time of closing provided the revenue foundation, and the new facility provided the operational capacity to execute that backlog while simultaneously expanding the company's bidding capacity for future work. The transaction positioned a Division 10 specialty contractor with three years of accelerating revenue growth, a deep contracted backlog, and a market tailwind from regional commercial construction demand for long-term scaling in an owner-occupied facility financed entirely through the SBA 7(a) program.

• $3,696,000 SBA 7(a) facility closed at 100% financing with no equity injection
• Owner-occupied commercial property acquired, consolidating operations from five locations into one
• 25-year fully amortizing term at WSJ Prime + 2.50%
• Four rented storage facilities eliminated, centralizing Division 10 material staging and logistics
• Office capacity for additional estimators immediately available, enabling expanded bid coverage and revenue growth
• $7M+ contracted backlog provided near-term revenue visibility at closing
• Projected 20% Year 1 revenue increase post-acquisition supported by documented bid economics and market demand
• Working capital and all closing costs included in the facility, preserving operating liquidity

Additional financing outcomes are available in our Transaction Highlights archive.