Buying equipment can be a major expense for small business owners. Whether you need commercial kitchen equipment, manufacturing machinery, computers, tools, agricultural equipment, or upgraded technology, the cost can make it difficult to start or grow your business.
Fortunately, some grants and business assistance programs support specific equipment purchases, industries, or business improvements. Other options include local economic development funding, targeted energy-efficiency programs, and small business loans that can be used to purchase eligible equipment.
The most suitable option depends on your business type, location, equipment needs, and eligibility.
Who May Qualify for Small Business Equipment Assistance?
You may want to explore equipment funding if you are:
- Starting a small business and need essential tools or machinery
- An established business owner replacing outdated equipment
- A manufacturer investing in production machinery
- A farmer or agricultural business owner purchasing eligible equipment
- A small business improving energy efficiency
- A technology business developing or testing innovative products
- A rural business owner looking for local development assistance
- An entrepreneur who cannot comfortably afford an essential equipment purchase
Some programs target specific industries or projects rather than providing general equipment grants. Check each program's eligibility rules before applying.
Check What You May Qualify For
Finding the right equipment funding starts with identifying programs that match your business and intended purchase.
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Programs vary by location, business type, equipment, and eligibility requirements.
Types of Grants and Funding for Business Equipment
State and Local Small Business Grants
Some state governments, cities, counties, and economic development organizations offer targeted business grants or incentives. Depending on the program, eligible funding may support equipment purchases, business modernization, manufacturing, or expansion projects.
Search your state's economic development website and your local business assistance office. Confirm that the program allows funding for the equipment you need.
Manufacturing and Industrial Equipment Assistance
Certain programs support manufacturers seeking to improve production, adopt new technology, or strengthen supply chains.
Eligibility may depend on the type of manufacturing activity, project goals, business size, and location. Some programs fund training or technical assistance rather than purchasing machinery directly, so review the permitted uses carefully.
Agricultural and Rural Business Programs
Farmers and eligible rural businesses may find specialized programs for particular equipment or energy-related improvements.
For example, the USDA's Rural Energy for America Program (REAP) supports eligible renewable energy and energy-efficiency projects for agricultural producers and qualifying rural small businesses. It is not a general grant for any equipment purchase.
Research and Technology Funding
Businesses developing innovative technologies or conducting qualifying research may be eligible for specialized funding opportunities.
The federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs support eligible research and development projects. They are not general-purpose grants for routine equipment purchases, and equipment costs must comply with the specific award rules.
Small Business Loans for Equipment
If grants are unavailable, financing may provide a practical alternative.
The U.S. Small Business Administration's 7(a) loan program can support eligible equipment purchases. The 504 program can finance certain major fixed assets, including machinery and equipment. SBA Microloans may also be used for eligible equipment purchases and provide loans of up to $50,000 through participating intermediaries.
How to Apply for Small Business Equipment Funding
- Identify the equipment you need. List the item, its purpose, and how it will help your business operate or grow.
- Obtain written estimates. Request quotes from reputable suppliers and compare prices.
- Research suitable programs. Check official state, local, industry-specific, and federal resources.
- Review eligibility requirements. Confirm that your business and proposed purchase qualify.
- Prepare your documents. You may need business registration details, financial statements, tax records, supplier quotes, and a business plan.
- Apply before purchasing when required. Some programs do not reimburse expenses incurred before approval.
- Keep your records. Save invoices, payment records, award documents, and any required reports.