SBA Loans for Equipment

A Small Business Administration (SBA) equipment loan structure is built for major equipment purchases that support daily operations. Terms align with the useful life of the asset, featuring fixed-rate options and a standard 50-40-10 split that helps preserve working capital.

SBA loans available for purchasing business equipment

What Type of Equipment Can Be Financed

504 funds “heavy-duty, long-term” assets tied to production and service delivery. Typical SBA equipment financing projects include:

  • Manufacturing and processing lines, CNC and machine tools, presses, ovens, kilns, mixers, and related fixtures.
  • Packaging, bottling, printing, labeling, and material-handling systems.
  • Specialized medical, lab, food, and industrial equipment is used primarily by the operating company.
  • Energy and plant-support assets installed as part of the project (controls, compressors, dust collection, chillers).
Types of equipment that can be financed with SBA loans

SBA 504 Machinery and Equipment Loan Benefits

A few features make 504 a strong fit for equipment acquisitions.

  • Lower equity through the standard 50-40-10 structure arranged with your bank partner.
  • Fixed SBA 504 debenture options aligned to asset life for predictable payments.
  • New or used equipment is eligible when the condition and valuation support the request.
  • Installation, freight, and approved soft costs may be included in the project budget.

What to Consider Before Applying

A pre-check helps align timing with quotes and delivery.

  • Useful life: the asset’s expected life should support the requested term.
  • Quotes and scope: itemized vendor quotes with model numbers, options, installation, and freight.
  • Condition and valuation: for used equipment, provide serial numbers, photos, hours, and an appraisal if needed.
  • Cash and credit: equity source documented; acceptable credit, tax returns, and current financials.
  • Collateral and filings: UCC and any project-specific filings coordinated early.
  • Delivery and commissioning: schedule coordinated with inspection, funding, and first payment timing.
Important factors to consider before applying for an SBA loan

Eligible Uses of Proceeds

504 equipment projects fund fixed assets and project costs tied to placing the asset into service.

  • Acquisition of heavy-duty machinery/equipment, new or used.
  • Installation, rigging, foundations, controls, and integration into the line.
  • Freight, taxes, and approved soft costs necessary to complete the project.
  • Refinancing qualified equipment debt when program rules are met.
Eligible uses of SBA loan proceeds for business financing

How to Purchase Heavy Equipment with an SBA 504 Loan

The process is straightforward and built around clean documentation and clear roles. 504 Capital coordinates structure with your bank and guides the file from start to finish.

  • Pre-qualify and structure your loan with your lending partner and 504 Capital.
  • Application with financials, ownership details, and vendor quotes.
  • SBA review and authorization of the 504 debenture.
  • Closing, funding, inspection, and commissioning of the equipment.
  • Ongoing servicing with a single point of contact at 504 Capital.
Guide to purchasing heavy equipment using an SBA 504 loan

Why Work With 504 Capital Corporation

Daily SBA 504 work, lender coordination, and in-house servicing keep equipment projects on schedule. The team packages cleanly, aligns with your bank partner, and stays engaged after closing so payments, escrow items, and routine requests are handled in one place.

Call Now Check Eligibility

SBA 504 Equipment Loan FAQs

Yes, used equipment is eligible when condition, valuation, and useful life support the request. Expect to provide serial numbers, photos/hours, and—when needed—an appraisal. We coordinate any third-party reports early so closing targets stay in view.

504 finances “heavy-duty, long term fixed” assets. The term is matched to useful life, so equipment must demonstrate a remaining life that reasonably supports the requested amortization. We verify this through quotes/specs (new) or valuation/appraisal (used).

If both are part of a defined, owner-occupied project, yes—many transactions pair real estate and long-life machinery under one 504 structure. We’ll outline sources/uses, split eligible costs, and align timing with vendor lead times and construction milestones.