Acquiring an HVAC / Plumbing Business in California Without a License

March 10, 2026

by a searcher in Sacramento, CA, USA

Hi everyone. Question for lenders and searchers who recently closed HVAC or plumbing deals. I’m in California and after the SBA rule changes in June and December 2025, I’m hearing mixed guidance from lenders regarding license holders, seller notes, and personal guarantees. My preferred structure would be: • Use the seller’s license for ~12 months during transition • Seller holds a note on standby for 24 months (5-10%) • Seller does not sign a personal guarantee • Buyer injects 5–10% equity, remainder bank financed However, some lenders are now saying the seller must sign a PG, while others say standby is sufficient. Another structure suggested to me is bringing in a licensed individual (RMO) with ~1–2% equity, where that person holds the license but does not personally guarantee the loan. For those who recently closed similar deals: • What structure did your lender require? • Did the seller have to sign a PG? • Were you able to operate using the seller’s license during transition? Any insights would be appreciated. If you’re a lender or broker who can help structure this deal, feel free to DM me.

Reply by a lender
in Ponte Vedra Beach, FL 32082, USA

^redacted‌. Happy to have a quick call on this. Many lenders will approach this situation differently. In order to share how Ameris would structure this I do need to know who will hold the license after that first 12 months. My cell is###-###-#### and my email is redacted You’re welcome to reach out anytime call text or email.

Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - there's a lot of misinformation here and I'd like to clear the air. We do a lot of home services deals that require licenses, and even the most aggressive lenders require someone other than the seller to hold the license at close. Brad brings up some good points, but having the seller identified as the license holder at closing will usually not work. We do more licensed home services deals than most brokers, and I talked to several lenders today about this exact scenario. They flagged two issues: it gives the seller too much control, and if the seller is the key employee, it's a violation of the SOP. The only exception is if there is a very clear transition plan in place and the key employee obtains the license relatively quickly after closing. We have a lot of experience financing home services companies via the SBA and work with all the major lenders. If you ever need help reviewing a deal, I'm happy to help - and it's a 100% free service for you since the bank pays us after your loan closes. You can email me directly at redacted or schedule a meeting here: https://cal.com/francodeguzman/30min. Look forward to chatting!

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