Glossary · The loan itself
In short
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.
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day