HVAC License Issue

May 20, 2026

by a searcher from Shorter College in Atlanta, GA, USA

I am currently seeking to acquire an HVAC company and would appreciate insight from others who have navigated a similar situation. My background includes experience in the wastewater, plumbing, and HVAC industries, but I do not personally hold an HVAC license. The current owner is willing to stay on after the transaction. However, I understand SBA requirements may impact whether a previous owner can remain the qualifying license holder after a sale if there is no continued ownership. He does hold the plumbing license and is open to remaining involved post acquisition, including potentially supporting licensing requirements. From an SBA and operational standpoint, I am trying to understand whether hiring a licensed qualifier or licensed HVAC operator would satisfy licensing and SBA requirements without requiring equity ownership. I am also interested in what the most cost efficient and compliant structure typically looks like in situations like this. I am trying to better understand how buyers typically structure these deals when they have relevant industry experience but do not personally hold the HVAC license. Any insight or experiences would be greatly appreciated.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I would be happy to discuss licensing requirements with you for a loan. Whether you do SBA financing or conventional financing, being sure you have the license in place post-closing is going to be important to lenders. I would first focus on what is required in the State where you are buying the business. Does the license need to be held by an employee or an owner of the business? That is going to be important to understand. If an employee can hold it, then most lenders are going to want to be sure you have an employee involved that can hold that license. You can do that by retaining the seller via a partial business acquisition via an SBA 7A loan. However, we find most sellers do not want to sign the required personal guarantee even if they retain less than a 20% ownership interest (the guarantee is limited to 2 years, but is still on the full loan amount for that two-year period). You can also accomplish that, so long as the state allows it, by bringing in someone who has that license as an employee or an owner. If there are other employees that have the required licensing and you can use their license, then you may be able to operate with those employees. Lenders always view the optimal situation being if the buyer themselves can have that license, but that is not always possible to achieve in a highly technical field like this. I usually tell clients the more options they have to maintain the license the more likely lenders are going to get comfortable. So if you have the seller for a while, other employees that can hold the license, and / or you are bringing someone in that has it, that will make lenders more comfortable. If you have direct industry experience just not from the license holder perspective, that will also make it more likely lenders will get comfortable with you owning the business. If you would like to discuss further, you can reach me here or directly at redacted

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