If you have ever thought about buying an HVAC business, you have a deadline to take advantage of the best financing opportunity in history. So is this the best time to buy an HVAC business ever?

History is a great teacher. If you have been following business and the economy for any length of time, you learn that there are peaks and valleys of activity. When times are good, nearly all businesses across all industries are making money. However, in times of slowdown, that’s when the real opportunities present themselves. If a downturn is too abrupt or deep, the Federal Reserve frequently intervenes and cuts interest rates to spawn activity and the movement of money. The maneuver puts market pressure on banks to lend at lower rates. 

Effective Federal Funds Rate

It happened in 2000 in response to the dot com bubble.

It happened again in 2008 in response to the housing crisis.

…And it happened again in March 2020 in response to the COVID-19 pandemic, only this time, entrepreneurs got a bonus. 

That’s why this is the best time to finance the purchase of an HVAC business ever. Factors have lined up in favor of the entrepreneur at precisely the same time. 

Here’s how it breaks down

The Fed rate now is 0%. Nope. It’s not a typo, 0%. Let that sink in. The Federal Reserve has rates at ZERO. That means they have pulled out all the stops to encourage commerce, business confidence, and entrepreneurs to get in the game with new (to them) businesses. It’s the lowest in history and won’t stay this way for long. It can’t. While this doesn’t mean you get a loan for free, it does mean you should get the most favorable terms possible. 

And that’s not all. The Federal government was so nervous about the recent slowdown, they threw even more incentives at popular Small Business Administration (SBA) products to sweeten the deal. 

The SBA will pay the first 6 months of principal and interest on your new loan insured before l September 27th. That’s incredible, and it’s never happened before.

If you have thought about buying a business, but never did, this is one case where procrastination worked in your favor. It’s a big deal because you can work through the inevitable learning curve of your new business and not have to worry about a looming loan payment. It decreases stress while increasing your chance of success. 

Imagine buying a heating and air business, running it all summer (your most profitable time ), and not having to make a payment until next year!

Everyday great businesses are being listed for sale. While some are distressed, most are solid businesses that have been around for a long time. Approaching retirement or health reasons may be the reasons that are forcing the sale. Be sure to work with a business broker that understands the HVAC business world so they can help steer you past the lemons. 

History is a great teacher indeed. 

Patrick Lange


About Patrick Lange:

Patrick Lange is an experienced HVAC specific business broker with Business Modification Group based in Horseshoe Beach, Florida. He has a unique background in financial planning and has even owned an HVAC business himself. This makes him well suited to working with some of the most successful HVAC business owners in the country. Specializing in companies with 1-10 million dollars in revenue, he maintains a network of buyers and sellers in the industry. He has sold more HVAC businesses than any other broker in the United States over the last 12 months and is currently the Vice President of the Business Brokers of Florida (North Florida District.)