Side-by-side breakdown
● indicates the winner on that row
| Metric | SBA 7(a) | Equipment Financing |
|---|---|---|
| Time to fund | 30-90 days | ●1-7 days |
| Typical APR (well-qualified) | 10.5-13.0% | ●7.5-11.0% |
| Loan amount | ●Up to $5M | Up to $2M (single unit) |
| Term length | ●Up to 10 yr (equip), 25 yr (RE) | 36-84 months |
| Collateral | Personal guarantee + business assets | Equipment itself |
| Down payment | 10-20% | ●0-20% |
| Use of funds | ●Equip, RE, WC, refinance, buyout | Equipment only |
| Paperwork burden | Heavy, full financials, plan | ●Light, app + bank stmts |
Pros & cons
Option A
SBA 7(a) Loan
- Lowest cost of capital available
- Long terms (10-25 years), lower payments
- Funds nearly any business purpose
- Builds long-term banking relationship
- Available with weaker credit when collateralized
- Slow, 30-90 day funding cycle
- Heavy documentation and compliance
- Requires SBA-eligible lender
- Personal guarantee + collateral required
Option B
Equipment Financing
- Fast, funds in days, not months
- Light documentation (app + 3 mo statements)
- Equipment is the collateral, minimal personal exposure
- Easy to scale across multiple units
- Available across credit spectrum (A through C)
- Higher APR than SBA
- Shorter terms, bigger monthly payments
- Use of funds limited to equipment
- Some lenders cap at 8-year-old equipment
Approval timeline, SBA 7(a) vs. equipment finance
Days from application to funded, Brobas-sourced deals
- SBA 7(a)
- Equipment finance
Source: Brobas Capital portfolio, 2024-2025
Typical APR range by program
Mid-2026 market, well-qualified borrowers
- Low
- High
Source: SBA.gov · Brobas lender panel
Run the numbers yourself