{"ok":true,"canonical_url":"https://dealroom.so/glossary/equipment-lease","api_url":"https://dealroom.so/api/public/glossary/equipment-lease","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-lease","term":"Equipment Lease","group":"The loan itself","definition":"An equipment lease is a contract to rent equipment for a specified period, rather than buying it outright. Existing leases on essential equipment will impact the business's cash flow and your debt service capacity.","what_it_means":"During due diligence, carefully review all existing equipment leases. Understand the monthly payments, remaining term, and whether the lease includes a purchase option. These fixed obligations reduce the cash flow available for your SBA loan payments. New equipment can sometimes be purchased with SBA loan funds, but leasing isn't typically covered.","url":"https://dealroom.so/glossary/equipment-lease","official_sources":[],"related":[{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"}],"related_questions":[{"question":"If the business property is leased, can the SBA loan finance a security deposit for the lease?","url":"https://dealroom.so/sba-7a/questions/if-the-business-property-is-leased-can-the-sba-loan-finance-a-security-deposit-for-the-lea"},{"question":"If the business property is leased, can an SBA 7(a) loan finance security deposits for the lease?","url":"https://dealroom.so/sba-loans/basics/if-the-business-property-is-leased-can-an-sba-7-a-loan-finance-security-deposits-for-the-l"},{"question":"Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-tenant-improvements-on-leased-property-if-the-lease-term-match"},{"question":"If I am buying a business that leases its property, can I get a longer loan term if the lease is long-term?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-a-business-that-leases-its-property-can-i-get-a-longer-loan-term-if-the-lea"},{"question":"What collateral is required if the business being acquired primarily leases its equipment and vehicles?","url":"https://dealroom.so/sba-7a/questions/what-collateral-is-required-if-the-business-being-acquired-primarily-leases-its-equipment-"},{"question":"What specific due diligence is required if a 7(a) loan finances only equipment located in a leased property?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-if-a-7-a-loan-finances-only-equipment-located-in-a"}]},"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 Lease","url":"https://dealroom.so/glossary/equipment-lease","source_type":"DealRoom Data"}}