SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase new or used business equipment. This is a common and eligible use of the loan funds.
The 7(a) program supports a wide range of legitimate business purposes, including the acquisition of fixed assets like machinery, vehicles, or office equipment. These assets are vital for business operations and growth.
A manufacturing company needs a new $250,000 machine to increase production. An SBA 7(a) loan could fund this purchase, with the new equipment often serving as collateral.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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