Business Modification Group highlights the new SBA rule change as a win for HVAC acquisitions, opening doors for both buyers and sellers in the industry.

(PRUnderground) January 28th, 2025

The Small Business Administration (SBA) has introduced a significant rule change to its 7(a) loan program, making it easier for buyers and sellers in the HVAC industry to close successful deals. The updated rule now allows asset sales for partial changes of ownership, expanding opportunities for buyers while alleviating concerns for sellers.

Previously, buyers without HVAC licenses often could not secure SBA financing, leaving them out of the running for HVAC business acquisitions. Licensing requirements in many states can take years, including extensive training, examinations, and field experience. This barrier discouraged newcomers from entering the industry and limited the pool of eligible buyers for HVAC businesses.

However, the new SBA rule permits sellers to stay on as employees or consultants indefinitely, allowing buyers to use SBA-backed loans to structure deals as asset sales. Sellers can even retain an equity position in the new company, providing more flexibility and collaboration during ownership transitions.

“This is a game changer for the HVAC industry,” said Patrick Lange, an HVAC-specific business broker with Business Modification Group. “For years, I’ve had conversations with potential buyers eager to enter this industry, only to be stopped by licensing barriers. This rule change creates new opportunities for buyers to get started and for sellers to achieve their goals.”

The rule change delivers key benefits to both parties:

• For Sellers: Access to a larger pool of motivated buyers who can now qualify for SBA financing. This removes the need for stock sales, which carry greater liability risks and fewer tax advantages. Sellers can stay involved with their business, ensuring smooth transitions for staff, customers, and the company’s brand.
• For Buyers: Flexibility to structure deals without needing a license immediately. Buyers gain time to familiarize themselves with the business, secure licensing, or hire a licensed general manager while maintaining operations.

Lange emphasized that the new rule is a win-win for everyone involved. “This change is good for sellers who want to protect their legacy, good for staff who benefit from continuity, and good for buyers who can grow into the role with support,” he explained.

With thousands of qualified buyers in its database, Business Modification Group sees this as a prime opportunity for HVAC business owners considering a sale. Whether sellers are looking to retire, scale back, or secure capital, this rule change provides new pathways to success.

“If you’ve been thinking about selling or bringing in capital to grow, this could be the perfect year to take the next step,” Lange said. “The SBA rule change makes connecting motivated buyers with profitable HVAC companies easier than ever.”

Led by Patrick Lange, Business Modification Group specializes in buying and selling HVAC businesses nationwide. With a unique background in financial planning and HVAC business ownership, Lange has sold a record number of HVAC companies each year. His expertise includes working with businesses generating $1 million to $10 million in revenue and connecting them with a robust network of qualified buyers. For more information or to schedule a complimentary valuation, visit www.BusinessModificationGroup.com today.

About Business Modification Group

Business Modification Group is a trusted HVAC broker with a reputation for consistently selling a record number of heating, air, and plumbing companies nationwide. They pride themselves as a firm with the most complete database that exists of buyers and sellers specifically in the HVAC business.

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Original Press Release.