SBA loan basics
Short answer
Yes, purchasing new or used equipment is a very common and eligible use for an SBA 7(a) loan, helping businesses acquire necessary tools and machinery.
SBA 7(a) loans can finance a wide range of business equipment, from office furniture and computers to heavy machinery and vehicles. The loan term for equipment is generally tied to its useful economic life, typically up to 10 years.
A construction company needs a new bulldozer costing $150,000. They can use an SBA 7(a) loan to finance this purchase over a 7-year term, allowing them to acquire the asset without depleting working capital.
Insider move
Lenders will assess the value and useful life of the equipment, often requiring an appraisal for specialized or high-value items. They also ensure the equipment is essential for the business's operations and revenue generation.
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
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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