Glossary · The loan itself
Equipment financing
In short
This is a type of loan specifically used to purchase business equipment. For an acquisition, it’s often part of a larger 7(a) loan package.
What it means in a deal
When you acquire a business, the value of its equipment is typically included in the overall asset purchase. Your 7(a) loan will cover this, often with the equipment serving as part of the collateral. If you plan to buy significant new equipment post-acquisition, your lender might structure specific equipment financing or add it to your working capital needs.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Equipment financing
- Which types of businesses are typically ineligible for SBA 7(a) financing?
- Does the SBA 7(a) loan program allow for seller training period financing?
- What makes a business 'speculative' and thus ineligible for SBA 7(a) financing?
- How does seller financing structure impact the required equity injection for a business acquisition?
- What specific due diligence is required for seller financing in a change of ownership?
- Can a 7(a) loan be used specifically to purchase new equipment?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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