Glossary · The loan itself
Equipment Loan
In short
A type of loan specifically used to purchase machinery, vehicles, or other business equipment. For a small business acquisition, it's often part of the larger 7(a) loan package.
What it means in a deal
When buying a business, the 7(a) loan can cover the purchase of existing equipment or new equipment needed for operations. The equipment serves as collateral for that portion of the loan. Your lender will assess the useful life and value of the equipment.
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 Loan
- Can a 7(a) loan be used specifically to purchase new equipment?
- Can my business use an SBA 7(a) loan to buy equipment?
- What kind of equipment can I buy with an SBA 7(a) loan?
- Can an SBA 7(a) loan be used to purchase new business equipment?
- Can I use an SBA 7(a) loan to purchase specific business equipment?
- Can an SBA 7(a) loan be used to purchase specific business 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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