Glossary · Reading the business
Fixed Asset Purchase
In short
This is when you buy long-term physical assets like equipment or real estate, not inventory. For a buyer, these are key to the business's operational capacity and future value.
What it means in a deal
In an SBA 7(a) acquisition, a fixed asset purchase could be a significant portion of the Use of Proceeds. You'll need an appraisal for these assets to confirm their fair market value, especially for larger items or real estate. Ensure the asset's useful life aligns with the loan term.
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 Fixed Asset Purchase
- What is the difference between an asset and stock purchase in a buyout?
- How does a recent significant personal asset purchase affect my SBA 7(a) loan application?
- Can an SBA 7(a) loan be used to purchase a business where goodwill is the primary asset?
- When can an SBA 7(a) loan finance the purchase of intellectual property as a primary asset in an acquisition?
- Can an SBA 7(a) loan be used to purchase a patent or other intellectual property as a primary asset?
- Can an SBA 7(a) loan finance the purchase of intellectual property, like a patent portfolio, as a primary asset?
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.