SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase new or used vehicles, machinery, or equipment that are essential for your business operations.
Financing equipment, including vehicles, is an eligible use of 7(a) loan proceeds. The equipment must be essential to the business, and the loan term for equipment is generally based on the useful economic life of the assets, typically up to 10 years.
A food delivery service applies for a $200,000 SBA 7(a) loan to buy five new refrigerated vans. The loan would cover the cost of these vehicles, allowing the business to expand its delivery capacity.
Lenders will assess the value of the vehicles, their useful life, and ensure they are critical to the business's operations. They will also take a lien on the vehicles as collateral.
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
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 use of funds - equipment
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