{"ok":true,"canonical_url":"https://dealroom.so/glossary/equipment-financing","api_url":"https://dealroom.so/api/public/glossary/equipment-financing","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"equipment-financing","term":"Equipment financing","group":"The loan itself","definition":"This is a type of loan specifically used to purchase business equipment. For an acquisition, it’s often part of a larger 7(a) loan package.","what_it_means":"When you acquire a business, the value of its equipment is typically included in the overall asset purchase. Your 7(a) loan will cover this, often with the equipment serving as part of the collateral. If you plan to buy significant new equipment post-acquisition, your lender might structure specific equipment financing or add it to your working capital needs.","url":"https://dealroom.so/glossary/equipment-financing","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"useful-life","term":"Useful life","url":"https://dealroom.so/glossary/useful-life"}],"related_questions":[{"question":"Which types of businesses are typically ineligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-loans/basics/which-types-of-businesses-are-typically-ineligible-for-sba-7-a-financing"},{"question":"Does the SBA 7(a) loan program allow for seller training period financing?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-allow-for-seller-training-period-financing"},{"question":"What makes a business 'speculative' and thus ineligible for SBA 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-makes-a-business-speculative-and-thus-ineligible-for-sba-7-a-financing"},{"question":"How does seller financing structure impact the required equity injection for a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-seller-financing-structure-impact-the-required-equity-injection-for-a-business-ac"},{"question":"What specific due diligence is required for seller financing in a change of ownership?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-seller-financing-in-a-change-of-ownership"},{"question":"Can a 7(a) loan be used specifically to purchase new equipment?","url":"https://dealroom.so/sba-loans/basics/can-a-7-a-loan-be-used-specifically-to-purchase-new-equipment"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Equipment financing","url":"https://dealroom.so/glossary/equipment-financing","source_type":"DealRoom Data"}}