NAICS 485410 Quarterly Industry Report
School and Employee Bus Transportation
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 485410Sector: 48Updated: Q1 2026
About This Report
This industry report for NAICS 485410 draws on school transportation data from the U.S. Census Bureau[5], employment statistics from the Bureau of Labor Statistics[6], and small business lending benchmarks from the Small Business Administration[7]. Fair Market Value compiles this NAICS 485410 profile to support valuation professionals assessing school bus contractors, employee shuttle companies, and student transportation businesses. Our research team updates this content quarterly to reflect contract award trends and fleet technology developments.
Industry Snapshot
Key metrics for the school and employee bus transportation industry.
Industry Definition & Overview
School and Employee Bus Transportation (NAICS 485410) encompasses establishments providing bus transportation for students and employees on routes that are not available to the general public. The U.S. Census Bureau[5] classifies these closed-door operations separately from public transit because the service is restricted to specific populations under contract with school districts, universities, employers, or government agencies.
School bus operations represent the dominant segment, transporting roughly 26 million students daily across more than 480,000 yellow school buses nationwide. Both private contractors and school district-owned fleets operate under strict federal and state safety regulations governing vehicle construction standards, driver qualifications, route planning, and student loading zone procedures. Revenue for private operators comes from multi-year contracts with school districts that specify route coverage, fleet size, and performance standards. Contract terms typically range from three to seven years with renewal options.
Employee shuttle operations serve corporate campuses, industrial facilities, military bases, and healthcare complexes where employers provide commuter transportation as a workforce benefit or operational necessity. These services use commercial motorcoaches, shuttle buses, and vans to transport workers between parking areas, transit stations, and work sites. Tech company shuttle programs in the San Francisco Bay Area and similar corporate transportation networks in other metropolitan areas have expanded this segment. Fleet maintenance costs, driver wages, fuel expenses, and insurance premiums constitute the primary operating cost categories for both school and employee transportation providers.
What's Included in This Industry
- School bus transportation under contract with K-12 school districts
- University and college campus shuttle bus operations
- Employee commuter shuttle service for corporate campuses
- Military base personnel transportation services
- Industrial facility worker bus transportation
- School field trip and athletic event bus service
- Special education student transportation with accessible vehicles
- Head Start and childcare center bus service
- Hospital and medical campus employee shuttle operations
- Summer camp and recreational program bus transportation
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Transit and Ground Passenger Transportation | 485 |
| Industry Group | School and Employee Bus Transportation | 4854 |
| NAICS Industry | School and Employee Bus Transportation | 48541 |
| National Industry | School and Employee Bus Transportation | 485410 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 485113 | Bus and Other Motor Vehicle Transit Systems | Public bus transit systems providing fixed-route service open to all riders, while 485410 operates closed-door routes restricted to students or employees |
| 485510 | Charter Bus Industry | Charter bus service providing vehicles on a hired group basis for any customer, distinct from the contracted closed-door routes that define school and employee transportation |
| 485210 | Interurban and Rural Bus Transportation | Interurban bus service providing scheduled public intercity transportation, contrasted with the private contracted service model of school and employee bus operations |
| 485999 | All Other Transit and Ground Passenger Transportation | Other ground passenger transportation including airport shuttles and vanpools serving general passengers rather than the specific student and employee populations of 485410 |
| 485991 | Special Needs Transportation | Special needs transportation providing non-emergency medical transport, overlapping with 485410 in the special education student transportation segment |
| 485310 | Taxi and Ridesharing Services | Taxi and rideshare services offering on-demand individual trips rather than the scheduled group transportation on fixed routes provided by school and employee bus operators |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Pennsylvania | 14.8% | 590 |
| 2 | New York | 8.1% | 324 |
| 3 | New Jersey | 7.8% | 310 |
| 4 | Maryland | 7.4% | 296 |
| 5 | Minnesota | 6.3% | 252 |
| 6 | Wisconsin | 5.8% | 231 |
| 7 | Massachusetts | 4.3% | 172 |
| 8 | Illinois | 4.3% | 171 |
| 9 | Connecticut | 4.0% | 158 |
| 10 | California | 3.9% | 154 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
288
Total SBA Loans
$117.5M
Total Loan Volume
$408K
Average Loan Size
10 yrs
Average Loan Term
10.53%
Average Interest Rate
7,952
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The Small Business Administration[7] sets the size standard for NAICS 485410 at $30 million in average annual receipts, measured over the preceding five completed fiscal years. Many school bus contractors and employee shuttle operators qualify as small businesses, particularly regional firms serving individual school districts or single corporate accounts. Eligible firms can access SBA 7(a) loans[8] for bus fleet purchases, GPS tracking and routing technology, and working capital to bridge payment cycles with school district clients. The SBA 504 loan program[9] supports maintenance facility and bus yard real estate acquisition. Federal contracting opportunities exist for employee transportation at military installations and government facilities.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Fulton Bank, National Association | 16 | $38.9M | $2.4M |
| 2 | Pathward National Association | 16 | $29.8M | $1.9M |
| 3 | JPMorgan Chase Bank, National Association | 16 | $11.2M | $698K |
| 4 | Manufacturers and Traders Trust Company | 64 | $10.4M | $162K |
| 5 | Citizens State Bank of La Crosse | 8 | $6.8M | $846K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 485410?
This code covers private school bus contractors, school district-operated transportation departments, university shuttle services, corporate employee commuter bus operators, and military base transportation providers. The defining characteristic is closed-door service restricted to students, employees, or other specific populations. Many U.S. Census Bureau[5] separates these from public transit operations that serve the general public.
How is school bus transportation structured differently from public transit?
School and employee bus operations under 485410 serve defined populations on contracted routes not open to the general public. Riders must be enrolled students, authorized employees, or other designated passengers. Public transit under 485113 operates fixed routes available to anyone paying the posted fare. School buses also follow distinct federal safety standards including specific vehicle construction requirements, stop-arm regulations, and student loading procedures not applicable to public transit.
What is the SBA size standard for NAICS 485410?
The Small Business Administration sets the size standard at $30 million in average annual receipts over five years. Regional school bus contractors and single-account employee shuttle operators typically qualify as small businesses. Details are in the SBA size standards table[10].
What NAICS codes are closely related to school and employee bus transportation?
Related codes include 485113 for public bus transit, 485510 for charter bus service, 485991 for special needs transportation, and 485999 for other ground passenger services. The closed-door contractual service model distinguishes 485410 from all public transportation codes, while the student and employee focus separates it from general charter and shuttle operations.
What industries are connected to school bus operations?
Connected industries include school bus manufacturers, GPS routing software companies, child safety seat and restraint suppliers, commercial vehicle insurance providers, and diesel and alternative fuel distributors. School district administration and procurement offices serve as the primary customer base, with contract awards typically following competitive bid processes governed by state procurement regulations.
What activities are included in NAICS 485410?
Included activities cover daily student transportation on assigned routes, field trip and athletic event bus service, special education transportation with accessible vehicles, university campus shuttles, corporate employee commuter programs, military base personnel transport, and hospital employee shuttles. The U.S. Census Bureau[5] includes all bus transportation restricted to students, employees, or other defined passenger groups.
Can school bus contractors get SBA loans?
School bus and employee shuttle operators under the $30 million revenue threshold can access SBA financing. The 7(a) program[8] supports bus fleet purchases, routing technology, and working capital to cover costs between school district payment cycles. Several 504 program[9] finances maintenance garages and bus yard real estate. These loans help small contractors compete for school district and corporate transportation contracts.
Where are school bus operations concentrated in the United States?
School bus operations span every state and nearly every school district, making this one of the most geographically distributed transportation sectors. The largest private contractors serve suburban and rural districts where population density makes contracted service more cost-effective than district-owned fleets. Employee shuttle concentrations track with corporate campus locations in technology hubs including the San Francisco Bay Area, Seattle, and Austin, as well as military installations and large hospital systems nationwide.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Small Business Administration sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]SBA 504 loan program sba.gov
- [10]SBA size standards table sba.gov
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