{"ok":true,"canonical_url":"https://dealroom.so/glossary/equipment-loan","api_url":"https://dealroom.so/api/public/glossary/equipment-loan","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-loan","term":"Equipment Loan","group":"The loan itself","definition":"A type of loan specifically used to purchase machinery, vehicles, or other business equipment. For a small business acquisition, it's often part of the larger 7(a) loan package.","what_it_means":"When buying a business, the 7(a) loan can cover the purchase of existing equipment or new equipment needed for operations. The equipment serves as collateral for that portion of the loan. Your lender will assess the useful life and value of the equipment.","url":"https://dealroom.so/glossary/equipment-loan","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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"useful-life","term":"Useful life","url":"https://dealroom.so/glossary/useful-life"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"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"},{"question":"Can my business use an SBA 7(a) loan to buy equipment?","url":"https://dealroom.so/sba-loans/basics/can-my-business-use-an-sba-7-a-loan-to-buy-equipment"},{"question":"What kind of equipment can I buy with an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-equipment-can-i-buy-with-an-sba-7-a-loan"},{"question":"Can an SBA 7(a) loan be used to purchase new business equipment?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-new-business-equipment"},{"question":"Can I use an SBA 7(a) loan to purchase specific business equipment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-specific-business-equipment"},{"question":"Can an SBA 7(a) loan be used to purchase specific business equipment?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-specific-business-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 Loan","url":"https://dealroom.so/glossary/equipment-loan","source_type":"DealRoom Data"}}