Try This SBA Loan Equipment Financing Tool for Your Company

May 17, 2024

As your small business grows, you may need to invest in new equipment or machinery to meet customer demand. However, acquiring these fixed assets can be a major financial commitment, potentially making it challenging for businesses to cover the full cost out of pocket.

If your business needs a reliable, strategic way to acquire business equipment – or even commercial property – a Small Business Administration (SBA) loan may be the ideal solution.

Discover how your business can obtain the financing needed for long-term growth through an SBA loan equipment financing tool. Also, learn why Texas Gulf Bank is the SBA lending partner to have on your side.

Financing Options for Your Business Needs

Throughout a company’s lifespan, there is a point where you may need access to funding to keep the company successful. This stage could be in the early years after launching the business, during busy periods of hiring more staff and purchasing more inventory, taking advantage of growth opportunities, or during seasonal dips in revenue.

It may be tempting to utilize savings or accumulate debt to cover day-to-day expenses or invest in equipment needs. Instead, a small business loan might be the ideal way to fuel business growth and secure the equipment needed for long-term success.

Your business deserves to have access to financing options that encourage growth and strengthen operations without sacrificing financial stability. SBA loans are designed to help your business cover the cost of major fixed assets in a cost-effective, strategic way.

SBA Loans: Set Aside To Support Growth

The Small Business Administration (SBA) is a federal agency dedicated to helping small business owners access financing options needed to grow and expand their businesses. The SBA provides a loan guarantee on a portion of these loans to help established small business owners receive the funding needed to cover major purchases like equipment and daily expenses.

The SBA offers two primary loan programs for small business owners, each with varying maximum loan amounts and specific ways funds may be used: the SBA 504 loan and the SBA 7(a) loan.

SBA 504 Loans

SBA 504 loans are intended for small businesses that need to make large purchases of fixed assets such as commercial real estate, buildings, heavy equipment, or major machinery. SBA 504 loans can be used to cover equipment purchases and expenses, including:

Land lots
Commercial buildings and facilities
Long-term equipment and machinery with a usage life of at least 10 years
Building construction
Facility renovations and upgrades
Street and utility improvements
Parking expansions

Please note that SBA 504 funds may not be used for working capital expenses such as inventory, payroll, taxes, utilities, and other day-to-day costs.

SBA 7(a) Loans

You may also be interested in SBA 7(a) loans to help with business operations. This loan product can be used to support several areas of your business that may free up resources to support major acquisitions.

Small businesses that need an influx of funding to cover operational costs may benefit from the SBA 7(a) loan to cover a wide variety of business expenses, including:

Short- and long-term working capital expenses
Buying business furniture, supplies, and fixtures
Acquiring tools, machinery, and business equipment
Buying commercial buildings
Facility renovations
Refinancing business debts

Through an SBA 7(a) loan, your business may be able to access funds that free up more working capital and improve overall cash flow. You would then be better positioned to focus on other business-critical needs and improvements.

SBA Loan Equipment Financing: Discover an Experienced SBA Lending Team

With over 110 years of experience supporting businesses throughout the Southeast Texas Gulf Coast, our bank proudly offers clients a wealth of regional expertise, strategic banking solutions, and exceptional customer service. We offer a wide range of loan options, including SBA loans, that fit your unique business needs and budgetary goals.

To learn more about SBA loan equipment financing solutions and other business needs, contact Texas Gulf Bank at 1-800-467-7216, use the contact form to reach our SBA Loan Specialist, or visit one of our many local banking centers. We look forward to partnering with you to help your business grow and thrive.

– To discover more options for commercial loan services from Texas Gulf Bank, subscribe to our email newsletter. You’ll receive regular updates about our different loan options, business banking services, and the latest banking news directly in your inbox.

All loans subject to credit approval