Glossary · The loan itself
In short
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.
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.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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