It’s big business in this country to set up a health club or a gym, especially considering the fact that every year these facilities generate a little under $100 billion worth of revenue. If you happen to own one of these facilities, you may need to acquire new gym equipment to get started, or to replace equipment you already have.
The Small Business Administration makes loans available to gym owners so that this equipment can be financed, and your business can have a chance to thrive and grow. Many gym owners seek financing for such equipment as rowing machines, spinning bikes, cardio machines, TRX equipment, barbells, and other types of training equipment. Here’s how you can acquire an SBA loan to finance the purchase of this type of equipment.
Terms for SBA loans
The most popular type of SBA loan is the 7(a) loan, and this particular type of loan provides for equipment loans that can be repaid over as long as 10 years. However, any loan which is greater than $25,000 must be supported by some form of collateral, and that might be difficult for a gym owner to come up with, especially if you don’t own the building being used.
A maximum amount of $5 million is available through this loan program, although it rarely happens that such a high amount is advanced for gym equipment. It would be possible for a gym owner to obtain that level of financing if he/she were seeking to purchase commercial real estate in addition to the gym equipment. In this case however, it would still be necessary to provide sufficient collateral to obtain that level of financing. That means some other form of collateral, other than the building itself, would have to be used in order to secure the loan.
Need Financing for Your Gym Equipment?
Securing a loan to purchase gym equipment can be accomplished through the SBA, and we work with the SBA to help borrowers achieve their goals. Contact us at Hornet Capital Solutions to explore your loan options.