SBA loan basics
Short answer
Yes, purchasing new or used equipment for your business is a common and eligible use of SBA 7(a) loan funds.
The 7(a) program allows funds to be used for capital expenditures, including the acquisition of machinery, furniture, fixtures, and other essential equipment necessary for business operations.
A manufacturing company needs to upgrade its production line with a new $250,000 piece of machinery. They can use an SBA 7(a) loan to finance this equipment purchase.
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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