Equipment Grants for Small Business
Equipment is often the largest capital expense for growing small businesses. Federal agencies offer grants and low-interest loans specifically to help businesses acquire machinery, tools, technology, vehicles, and other essential equipment. Below are 89 verified equipment grants for small businesses, helping you reduce startup costs and expand operations without excessive debt.
Types of Equipment Grants
Manufacturing Equipment
Grants for production machinery, processing equipment, and manufacturing tools. Supports business expansion and productivity improvements for manufacturers.
Technology & IT Equipment
Funding for computers, software, telecommunications equipment, and digital infrastructure. Essential for modernizing business operations and competitiveness.
Agricultural Equipment
USDA grants for farm machinery, irrigation systems, and agricultural technology. Helps farmers modernize operations and increase yields.
Tools & Instruments
Grants for specialized tools, testing equipment, and professional instruments. Supports trades, construction, automotive, and professional service businesses.
Federal Programs for Equipment Grants
SBA Equipment Loans
Purpose: Finance equipment and machinery for small business growth
Loan Amounts: Up to $5 million for business assets
Interest Rates: 7-10% (fixed or variable)
Terms: 10-25 years depending on asset life
What Qualifies: Machinery, vehicles, tools, computers, software, furniture, fixtures
Website: SBA 7(a) Loan Program
USDA Rural Business Loans for Equipment
Purpose: Support equipment acquisition in rural areas
Loan Amounts: Up to $25 million for business equipment
Geographic Focus: Rural communities (population under 50,000)
Industries: Agriculture, manufacturing, retail, services
Equipment Coverage: Farm machinery, processing equipment, vehicles, facilities
Website: USDA Rural Business Programs
Small Business Equipment Grant Programs
Purpose: Direct grants for equipment (not loans) for qualified businesses
Typical Grant Ranges: $5K-$50K depending on program and business size
Common Recipients: Agricultural businesses, startups in underserved areas, green energy businesses, minority-owned businesses
Focus Areas: Equipment that improves efficiency, competitiveness, or environmental performance
Website: SBA Funding Programs
Technology & Innovation Equipment Grants
Purpose: Support adoption of technology and innovation by small businesses
Equipment Focus: Digital tools, software systems, automation equipment, research equipment
Eligibility: Businesses demonstrating innovation potential, R&D activities, technology adoption
Funding Source: NSF, SBA, NIH, Department of Commerce
Website: SBA SBIR/STTR Programs
Who Qualifies for Equipment Grants?
Equipment grants are available for small businesses meeting these general criteria:
- Size Requirements: Businesses with fewer than 500 employees or under $10 million annual revenue (SBA standard)
- Business Structure: Sole proprietors, partnerships, LLCs, S-corporations, and C-corporations all eligible
- Established Operations: Existing businesses with 1+ year operating history (some programs allow startups with strong business plans)
- Credit & Financial Health: Good credit history and ability to demonstrate equipment need; some programs have flexible credit requirements
- Industry Focus: Manufacturing, agricultural, technology, retail, construction, professional services
- Special Designations: Additional funding available for women-owned, minority-owned, veteran-owned, HUBZone, or underserved businesses
- Geographic: Rural, urban, and suburban businesses all eligible (location may affect program availability)
- Business Purpose: Equipment must be used for legitimate business operations; some programs prioritize growth, innovation, or environmental sustainability
Key Success Factor: Clear business plan showing equipment need, how equipment will improve operations/revenue, and ability to repay (if loan) or manage equipment (if grant).
Frequently Asked Questions
What types of equipment qualify for grants?
Most business equipment qualifies: machinery (manufacturing, agricultural), vehicles (trucks, forklifts, company cars), tools and instruments, computers and software, telecommunications equipment, furniture and fixtures. Restrictions vary by program but generally exclude used equipment, routine maintenance, repairs, and operating expenses. High-value, long-term assets that improve business productivity typically qualify. Verify with specific program documentation before purchase.
Can I get a grant if I already have some equipment?
Yes. Grants support businesses at any stage of equipment needs: startups acquiring initial equipment, established businesses expanding/upgrading equipment, or companies modernizing operations. What matters is business viability and how the new equipment supports growth. If acquiring additional equipment, document existing assets and explain growth strategy to strengthen application.
What's the difference between equipment grants and equipment loans?
Grants: Free money (no repayment), typically smaller amounts ($5K-$50K), higher competition, slower timeline. Best for: businesses with limited cash flow, startups, underserved demographics. Loans: Repayable money (with interest), larger amounts available ($50K-$5M+), faster approval, flexible terms. Best for: established businesses with cash flow to support repayment. Many small businesses pursue both: small grant for partial equipment cost + loan for remainder = reduces total debt burden.
How long does equipment grant approval take?
Timeline varies by program: SBA loans (4-8 weeks), USDA programs (6-12 weeks), direct grant programs (3-6 months). Faster approvals typically come from established programs with streamlined processes. Slower timelines allow for more detailed review. Submit complete applications with all supporting documents to speed approval. For time-sensitive equipment needs, consider parallel loan application as backup.
Must I match grant amounts or provide collateral?
Requirements vary. Many programs don't require matching funds but prefer them (shows business commitment). Collateral requirements: SBA loans typically require collateral (equipment can serve as collateral), direct grants usually don't require collateral. For loans, stronger collateral position improves approval odds and rates. Discuss requirements with lender before applying; many programs offer flexibility for early-stage or underserved businesses.
Can used equipment be financed with grants?
Most programs prefer new equipment but allow used if: (1) equipment is reasonable priced for market, (2) business demonstrates cost-effectiveness, (3) equipment lifespan supports long-term use. Used equipment approval requires stronger justification than new. Vendors should provide equipment history and condition reports. Some programs limit used equipment to specific types or percentages of total request.
How do I start the equipment grant application?
Step 1: Identify equipment needs and costs (get quotes from suppliers). Step 2: Research applicable programs (SBA, USDA, industry-specific, state programs). Step 3: Verify eligibility (business size, location, industry, credit). Step 4: Prepare documentation (business plan, financial statements, equipment quotes, credit history). Step 5: Meet with SBA counselor (free, strengthens application). Step 6: Submit applications to 2-3 programs in parallel (increases approval odds). Step 7: Follow up and prepare for questions/verification. Timeline: Research to submission (2-4 weeks); approval (4-12 weeks).
Important Resources for Equipment Grants
SBA Small Business Development Centers
Free business consulting including equipment financing analysis and loan preparation assistance. Located nationwide.
SCORE Business Mentors
Free mentorship from experienced business leaders on equipment needs analysis, financing options, and vendor selection.
USDA Rural Development Programs
Equipment grants and loans for agricultural and rural business equipment. State-by-state information available.
SBA Equipment Financing Guide
Comprehensive guide to equipment loans, grants, and alternative equipment financing options for small businesses.
Federal Equipment Grants Available
Below are 89 verified federal equipment grants for small businesses:
Ready to Upgrade Your Equipment?
Equipment is an investment in your business's future. Whether you're buying your first machinery, upgrading technology, or expanding production capacity, federal grants and loans can help reduce the financial burden. Start by meeting with an SBA counselor or SCORE mentor who can help you select the right program and strengthen your application.
Many successful small businesses have grown faster because they accessed equipment financing when they needed it. Don't let equipment costs hold back your business growth. Explore these programs today and apply for funding that can transform your operations.