SBA rules · SOP 50 10 8.1

Can an SBA loan finance an equipment rental business?

Yes, an SBA 7(a) or 504 loan can finance an equipment rental business.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Passive business exception: Businesses engaged in leasing equipment, household goods, or other items are explicitly eligible under the core rules governing rental and leasing businesses.
Financing revenue restriction: If the business provides financing in the regular course of its operations, less than 50 percent of its revenue must come from financing its sales.

The source

What the SOP says

“Businesses that are engaged in leasing equipment, household goods or other items are eligible. (See Subparagraph E.2. above regarding the eligibility of businesses engaged in lending.)

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Note (lines 423-431)✓ Verified

“A business that provides financing in the regular course of its business (such as a business that finances credit sales) is eligible, if less than 50 percent of its revenue is from financing its sales.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Certain businesses engaged in lending may be eligible under limited circumstances: (lines 400-405)✓ Verified

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