What kind of equipment is eligible for SBA 504 financing?
The SBA 504 Loan Program can finance4 all costs associated with the purchase, transportation, dismantling or installation of machinery and equipment by a small business for use in its business operations. The machinery and equipment must have a useful life of at least 10 years. If the borrower owns equipment that is heavy or highly calibrated that must be moved as an essential part of the project then any special moving costs may be included in the project cost. Non-eligible project costs include: Short-term equipment, furniture and furnishings (unless essential to and a minor portion of the Project) Automobiles, trucks and airplanes Construction equipment (except for heavy duty construction equipment integral to a business operations and meeting the IRS definition of capital equipment.
