SBA loan basics
Short answer
Yes, purchasing new or used equipment for an existing business is a very common and eligible use for an SBA 7(a) loan. This can include machinery, vehicles, technology, or office furniture.
SBA 7(a) loans are well-suited for financing fixed assets like equipment. The loan term for equipment-only loans typically aligns with the useful life of the equipment, up to a maximum of 10 years. This allows businesses to acquire necessary tools and machinery without draining working capital.
A trucking company needs to purchase two new trucks costing $300,000. They can apply for an SBA 7(a) loan to finance this purchase, getting a loan that matches the 7-10 year useful life of the vehicles.
Insider move
Lenders will require invoices or purchase agreements for the equipment, and they will take a lien on the purchased equipment as collateral. They assess the equipment's value and its necessity for the business's operations and revenue generation.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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 what it can be used for
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