Equipment loans for a tree business: what the SBA and Canada's small business financing program say
What the US Small Business Administration and the Canada Small Business Financing Program say their loan programs fund, who lends, and the limits they state, as a reading of the program pages for a business that buys trucks, chippers and cranes.
Checked against the sources at the bottom of this page on October 9, 2026. Rules, fees and pay change: the source has the last word.
This page reports what the official source says. It is not legal advice: ask the office named here. It describes program pages. It does not say whether any business qualifies, which lender to ask, or what a loan costs, and it names no lender. The tax side of buying equipment is on the guide to equipment tax rules by country.
United States: SBA 7(a) loans
The Small Business Administration (SBA) describes the 7(a) program as its primary business loan program. It says the program provides a loan guarantee to lenders so they can help small businesses with special requirements. The page lists what 7(a) loans can be used for:
- acquiring, refinancing or improving real estate and buildings;
- short-term and long-term working capital;
- refinancing business debt that already exists;
- purchasing and installing machinery and equipment;
- purchasing furniture, fixtures and supplies;
- complete or partial changes of ownership.
The page states a maximum loan amount of US$5 million. It lists eligibility points: an operating business, operating for profit, located in the United States, small under SBA size requirements, not an ineligible type of business, unable to get the credit it wants on reasonable terms from sources outside federal, state and local government, and creditworthy with a reasonable ability to repay. On applying, it says the loan is applied for directly through a local lender, and that the applicant "will always work directly with your lender and not with SBA". It says the contents of an application vary with the size of the loan and the lender's processing method. For repayment, it says most 7(a) term loans are repaid with monthly payments of principal and interest from the cash flow of the business.
United States: SBA 504 loans
The SBA describes the 504 program as fixed rate, long-term financing for major fixed assets that support growth and jobs. It says Certified Development Companies (CDCs), which it calls its community-based nonprofit partners, originate a 504 loan together with a senior lender, and that CDCs are the only route to a 504 loan. The stated maximum loan amount is US$5.5 million.
The page says a 504 loan can be used for the purchase, construction or renovation of existing buildings or land, and for long-term machinery and equipment that has at least 10 years of useful life remaining. It says a 504 loan cannot be used for working capital or inventory, or for speculation or investment in rental real estate. It lists maturity terms of 10, 20 and 25 years.
Canada: Canada Small Business Financing Program
The program page from Innovation, Science and Economic Development Canada (ISED) says the Canada Small Business Financing Program (CSBFP) is meant to help small businesses get loans from financial institutions, with the government sharing the risk with lenders. Its page for small businesses gives these terms:
- Eligible: small businesses or start-ups operating in Canada with gross annual revenues of CA$10 million or less. Farming businesses are not eligible; the page points to a separate program for them.
- Maximum loan amount for a borrower: CA$1.15 million.
- Term loans: up to CA$1,000,000 for any one borrower. Within that, CA$500,000 is the most for leasehold improvements and new or used equipment, and CA$150,000 is the most of that for intangible assets and working capital costs.
- Lines of credit: up to CA$150,000, used for working capital costs.
The page says lenders run the program and alone decide on the loan, and names banks, caisses populaires and credit unions in Canada. It says term loans can finance the purchase or improvement of new or used equipment, and gives commercial vehicles as one example. On security, it says that for real property and equipment, security must be taken on the assets financed. The page was modified on June 22, 2026.
At a glance
| Program | Who lends | Equipment and stated limit |
|---|---|---|
| SBA 7(a), United States | A local lender, with an SBA guarantee | Machinery and equipment listed; maximum US$5 million |
| SBA 504, United States | A Certified Development Company with a senior lender | Equipment with 10 years of remaining life; maximum US$5.5 million |
| CSBFP, Canada | Banks, caisses populaires and credit unions | New or used equipment; up to CA$500,000 of a CA$1,000,000 term loan |
For buying kit second hand, see the guide on buying used gear.
Sources
- US Small Business Administration, 7(a) loans, read October 9, 2026
- US Small Business Administration, 504 loans, read October 9, 2026
- Innovation, Science and Economic Development Canada, Canada Small Business Financing Program, page dated June 25, 2026, read October 9, 2026
- Innovation, Science and Economic Development Canada, CSBFP: helping small businesses get loans, page dated June 22, 2026, read October 9, 2026