Can You Get a Gym Equipment Loan Through the Small Business Administration?
Gyms and health clubs across the U.S. produced approximately $80 billion in revenue in 2017 alone. And, if you’re a gym or health club owner, you might be looking to get a gym equipment loan through the SBA. Fortunately, 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— which could make them a great choice for your business’s needs.
Popular Kinds of Gym Equipment
With the health and fitness industry growing each year across the U.S., gym owners may be interested in financing the purchase of fitness equipment including:
Barbells and dummbells
Functional training equipment
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.