# Can a 504 loan finance equipment without real estate?

**Short answer:** Yes. A 504 project can be equipment alone. The equipment needs a useful life of at least 10 years and a fixed location. Source: SOP 50 10 8.1, Sec. A, Ch. 3, Para. A.1; Sec. C, Ch. 1, Para. C.2.

Canonical page: https://www.sbaexpress.loans/answers/can-504-loan-finance-equipment-only/
Last checked: 2026-11-08

Yes, because a 504 Project can be one or more long-term fixed assets (SOP 50 10 8.1, App. 3, p. 297). Equipment qualifies without a building attached. It must have a useful life of at least 10 years (Sec. C, Ch. 1, Para. C.2). It must also be at a fixed location (Sec. A, Ch. 3, Para. A.1).

## Costs that count

- Purchase price, transportation, dismantling and installation.
- Special moving costs for heavy or highly calibrated equipment you already own, when the move is essential to the project.

## Equipment that does not qualify

13 CFR § 120.884 excludes automobiles, trucks and airplanes. It excludes construction equipment, unless it is heavy duty, integral to operations and has at least 10 years of useful life left. Short-term equipment is excluded unless it is essential and a minor part of the project.

## Term

Machinery and equipment carry a minimum 504 maturity of 10 years (Sec. C, Ch. 1, Para. D.2). On a mixed project, the asset category with most of the proceeds sets the term.

## Used equipment

SBA requires an equipment appraisal when used equipment is bought from someone other than a dealer, or refinanced. A qualified, independent person must inspect it on site. The appraisal must be dated within 12 months before the application (Para. E.2.b).

## Shorter-lived equipment

The 10-year test applies only to 504 loans (Sec. A, Ch. 3, Para. A.1). A 7(a) equipment loan can run 10 years, or up to 15 years if the IRS asset class useful life supports it (App. 17, Para. A.2).

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 3, Para. A.1 (p. 51)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.2 (Para. C begins p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. D.2 (p. 241)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. E.2.b (Para. E begins p. 242)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 3 (p. 297)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 17, Para. A.2 (p. 390)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.884](https://www.ecfr.gov/current/title-13/section-120.884)
- [sba.gov/loans/504-loans (read November 8, 2026)](https://www.sba.gov/loans/504-loans/)