SBA loan basics
Short answer
Yes, purchasing new equipment, machinery, or vehicles is a common and eligible use of funds for an SBA 7(a) loan.
SBA 7(a) loans are frequently utilized to finance tangible assets such as machinery, vehicles, furniture, fixtures, and other essential equipment necessary for a business's operations. The loan term is typically tied to the useful life of the equipment, up to 10 years.
A construction company needs to purchase a new excavator costing $150,000. An SBA 7(a) loan can be used to finance this equipment purchase, allowing the company to spread the cost over a manageable term.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on use of funds - equipment
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day