SBA Loans for Medical Equipment: What Qualifies and How to Apply

Medical equipment is capital-intensive and depreciates fast. An MRI scanner costs $1–2M. A robotic surgery system runs $1.5–2.5M. Even a well-equipped primary care office can require $200–400K in diagnostic equipment. SBA financing is one of the best tools available because the guarantee allows lenders to finance equipment that would otherwise require 25–30% down and shorter terms.

What Medical Equipment Qualifies for SBA Financing?

Nearly all medical equipment qualifies under SBA 7(a). The key criterion is that the equipment is used in your business operations. This includes:

Imaging and diagnostic:

MRI (1.5T, 3T) — $700K–$2M

CT scanner — $400K–$1.5M

PET scanner — $1.5–2.5M

Digital X-ray and fluoroscopy — $50–150K

Ultrasound systems — $30–200K

CBCT (cone beam CT, common in dental and ENT) — $80–250K

Mammography — $150–300K

Surgical and procedural:

Robotic surgery (da Vinci) — $1.5–2.5M

Laparoscopic equipment — $100–300K

Endoscopy suites — $100–250K

Ophthalmology laser systems — $200–500K

Lithotripsy equipment — $300–600K

Specialty-specific:

Radiation therapy (linear accelerator) — $2–4M (may require 504)

Hyperbaric chambers — $100–300K

Physical therapy equipment (isokinetic, aquatic therapy) — $50–200K

Dermatology (laser, phototherapy) — $100–400K

Clinic infrastructure:

Electronic health records (EHR) implementation

Patient monitoring systems

Autoclave and sterilization equipment

Exam tables, procedure chairs, specialty furniture

SBA 7(a) vs. SBA 504 for Medical Equipment

Use SBA 7(a) when:

Equipment has a useful life under 10 years

You're bundling equipment with other needs (working capital, buildout)

The equipment purchase is part of a practice acquisition

Faster closing is a priority

Use SBA 504 when:

Equipment cost is $500K+

Equipment has a useful life of 10+ years (most large imaging and radiation therapy equipment qualifies)

You want a fixed rate on the equipment tranche

You're buying equipment AND real estate in the same project

For most primary care and specialty practices, SBA 7(a) handles equipment. Imaging centers and surgery centers with large capital equipment programs often use 504.

Equipment Appraisal: What Lenders Require

For equipment purchases over $500K, most SBA lenders require a formal equipment appraisal from a certified appraiser familiar with medical equipment. The appraiser provides:

Fair market value (FMV): What a willing buyer would pay today

Orderly liquidation value (OLV): What the equipment sells for in an organized disposition (used medical equipment market)

Forced liquidation value (FLV): Fire-sale value

Lenders lend against OLV for collateral purposes. Well-known brands (GE, Siemens, Philips, Canon, Varian) with active secondary markets get more credit than generic or off-brand equipment.

Tip: Manufacturer-certified refurbished equipment often appraises close to new and can be financed the same way as new equipment — at 30–50% lower cost. This is an underused option for equipment-heavy buildouts.

Structuring a Medical Equipment SBA Loan

Single-use equipment loan (7(a)):

$300K MRI upgrade at a radiology group

7(a) loan: $270K (90% of cost)

Borrower equity: $30K (10%)

Term: 10 years

Rate: Prime + 2.75% (currently ~13.25%)

Monthly payment: ~$4,000

Equipment + buildout combined (7(a)):

$150K ophthalmic laser + $200K office buildout = $350K total

7(a) loan: $315K

Borrower equity: $35K

Mixed term: 10 years for equipment, up to 25 if real estate is included

Large imaging center (504):

$1.8M CT scanner with 15-year useful life

Conventional lender: $900K

CDC (SBA 504): $720K at fixed 6.9%

Borrower: $180K (10%)

10-year term on CDC tranche, fixed

Common Documentation for Medical Equipment Loans

Equipment quote or invoice from vendor

Vendor specs (useful life, warranty, service contract)

Equipment appraisal (if required by lender)

2 years business tax returns

Current P&L and balance sheet

Personal tax returns and personal financial statement

Description of how the equipment fits into your revenue model (projected volume, reimbursement rates)

Revenue Projections for New Equipment

Lenders want to understand how the equipment generates cash flow to service the debt. For an MRI, for example:

Expected scan volume (per day/week)

Average reimbursement per scan by payer (Medicare rate is a floor; commercial is higher)

Operating costs (tech staff, maintenance contract, power)

Net revenue contribution to practice

If the equipment is replacing existing equipment, show the revenue history of the old equipment. If it's additive capacity, show market demand and referral patterns.

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