Today’s interest rates for all SBA loans
Check Today's Rates →
Can You Get a Gym Equipment Loan Through the Small Business Administration?
If you’re a gym or health club owner, the SBA 7(a) or even Express loan could be a terrific option to finance the acquisition of gym equipment.
If you’re the owner of a gym or health club, you know: Equipment is expensive. Thankfully, the SBA 7(a) loan program, as well as the SBA 7(a) Express Loan both permit borrowers to finance the purchase of gym equipment. This could make either a great choice for your business needs.
SBA Loan Terms for Gym Equipment
The SBA 7(a) program, which is the Small Business Administration’s most popular loan type, typically offers equipment loans with 10-year terms. However, the SBA requires that loans above $25,000 be collateralized, which may be difficult for gym owners that do not currently own the property that their gym is located on.
While SBA 7(a) loans offer a maximum loan amount of up to $5 million, it’s unlikely that a gym would be approved for a loan of that size simply to purchase equipment. However, gym or health club owners that wish to purchase commercial real estate and buy gym equipment simultaneously can do so with a 7(a) loan.
Case Study: Upgrading FlexFit's Equipment
Meghan, a dedicated fitness enthusiast and experienced personal trainer, owned and operated a popular fitness center called "FlexFit Fitness Center" in Bakersfield, California. Over the years, her gym had grown steadily in membership, and Meghan recognized the need to upgrade and expand the facility's equipment to accommodate the increasing demand.
To fund the purchase of new gym equipment and improve her fitness center's offerings, Meghan decided to explore financing options. After conducting research, she concluded that an SBA 7(a) loan would be the most suitable choice, given its flexible use of funds and favorable terms.
Meghan prepared a detailed business plan that highlighted the growth of her fitness center, the need for new equipment, and the expected increase in revenue as a result of the upgrade. She also presented her strong financials and credit history to the lender, demonstrating her ability to repay the loan. Meghan requested a loan of $75,000 to cover the cost of the new equipment.
The lender was impressed with Meghan's well-prepared business plan and her commitment to providing high-quality fitness services to the community. They recognized the potential of FlexFit Fitness Center to continue growing with the proposed equipment upgrade.
Since the loan amount exceeded $25,000, the lender required Meghan to provide collateral. Although she leased the fitness center building and couldn't use it as collateral, Meghan was able to secure the loan with her personal assets.
Meghan's SBA 7(a) loan application was approved, providing her with the funds she needed to purchase state-of-the-art gym equipment and improve her leased facility. The new equipment not only attracted new members but also enhanced the workout experience for existing clients.
Thanks to the SBA 7(a) loan, Meghan was able to elevate FlexFit Fitness Center's reputation as a top-tier fitness facility in Bakersfield, California, catering to the needs of her growing clientele and expanding her business.
This is a fictional case study provided for illustrative purposes.
Get the Financing You Need for Your Business
Get a free quote, whether you're buying gym equipment or an entire fitness center. Drop your details into the form below, answer a few questions, and we'll get right to work finding the financing that will take your business to the next level.
Related Questions
What are the requirements for a gym equipment loan through the Small Business Administration?
The SBA 7(a) program, which is the Small Business Administration’s most popular loan type, typically offers equipment loans with 10-year terms. However, the SBA requires that loans above $25,000 be collateralized, which may be difficult for gym owners that do not currently own the property that their gym is located on. While SBA 7(a) loans offer a maximum loan amount of up to $5 million, it’s unlikely that a gym would be approved for a loan of that size simply to purchase equipment. However, gym or health club owners that wish to purchase commercial real estate and buy gym equipment simultaneously can do so with a 7(a) loan.
What types of gym equipment can be financed through the Small Business Administration?
The Small Business Administration's (SBA) 7(a) program typically offers equipment loans with 10-year terms for popular kinds of gym equipment, such as barbells and dumbbells, TRX equipment, cardio machines, spinning bikes, rowing machines, and functional training equipment.
However, the SBA requires that loans above $25,000 be collateralized, which may be difficult for gym owners that do not currently own the property that their gym is located on.
How long does it take to get approved for a gym equipment loan through the Small Business Administration?
The SBA 7(a) program, which is the Small Business Administration’s most popular loan type, typically offers equipment loans with 10-year terms. However, the SBA requires that loans above $25,000 be collateralized, which may be difficult for gym owners that do not currently own the property that their gym is located on. While the approval process for an SBA 7(a) loan can take up to 90 days, the actual time it takes to get approved for a loan depends on the lender and the borrower's creditworthiness.
For more information on SBA 7(a) loan terms, rates, fees, and maturity, please visit https://www.sba7a.loans/sba-7a-loan-terms-rates-fees-maturity. For more information on the Small Business Administration, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/what-is-the-small-business-administration. For more information on SBA 7(a) loans and collateral down payment, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/sba-7a-loans-and-collateral-down-payment. For more information on commercial real estate loan, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/commercial-real-estate-loan.
What are the benefits of getting a gym equipment loan through the Small Business Administration?
The Small Business Administration's 7(a) loan program offers gym equipment loans with 10-year terms and a maximum loan amount of up to $5 million. Additionally, gym or health club owners that wish to purchase commercial real estate and buy gym equipment simultaneously can do so with a 7(a) loan. This loan program also offers the benefit of collateralization, which may be difficult for gym owners that do not currently own the property that their gym is located on.
What are the risks associated with getting a gym equipment loan through the Small Business Administration?
The risks associated with getting a gym equipment loan through the Small Business Administration include the requirement to collateralize loans over $25,000, which may be difficult for gym owners that do not currently own the property that their gym is located on. Additionally, the SBA requires that all loans be repaid, and if the loan is not repaid, the collateral may be seized. Source