Five ways to finance equipment in New Jersey
| Option | Equipment term | Rate basis | Status |
|---|---|---|---|
| Private equipment loan or lease | Often 2 to 7 years [1] | Roughly 4% to 45% APR [1] | Available |
| SBA 504 through a CDC | 10 years for equipment [4] | Fixed, set off 10-year Treasury [5] | Open |
| SBA 7(a) or SBA Express | 10 years or less for most uses [4] | Negotiated within SBA maximums [4] | Open |
| NJEDA Direct Loans | 10 years new, 5 years used [3] | 5-year Treasury (1% floor) plus spread [3] | Open [6] |
| NJ LEND (larger projects) | Up to 10 years [7] | NJEDA fixed rate based on Treasury [7] | Open [6] |
The private loan is fastest. The public options are slower and ask for more, but on an expensive machine their longer terms and lower rates usually cost far less in total. The SBA 504 program is built for long-life assets: it covers "Long-term machinery and equipment with a useful remaining life of a minimum of 10 years" [5].
What an $80,000 machine costs at different rates
To show why the second quote matters, here is the same $80,000 purchase over five years at three rates inside the range NerdWallet reports [1]. This is our own standard loan math, with equal monthly payments and no fees. It is an illustration, not an offer.
| APR | Monthly payment | Total interest |
|---|---|---|
| 9% | About $1,661 | About $19,600 |
| 20% | About $2,120 | About $47,200 |
| 45% | About $3,370 | About $122,200 |
Fees add to this. NerdWallet reports equipment loan origination fees of typically 0.5% to 4% of the loan [1], and NJEDA charges a $1,000 application fee plus 0.875% commitment and 0.875% closing fees on Direct Loans [3]. Ask every lender for the total you will repay in dollars, and run it through the loan payment calculator.
New Jersey state programs that pay for equipment
NJEDA's core loans all accept equipment, and they treat it as the collateral they require. Direct Loans fund up to $2 million for fixed assets, and the page lists "machinery/equipment" as the kind of fixed asset you must provide [3]. The Premier Lender Program caps loan-to-value at 90% for equipment, so expect to put about 10% down on a bank loan with NJEDA participation [8].
NJ LEND is for bigger purchases: $2,000,000.01 to $5 million for fixed assets, including "Purchase of new equipment excluding rolling stock and soft costs", so trucks and vans and soft costs are out [7]. Two specialty programs target equipment for clean energy:
- NJ Clean Energy Loans (NJ CELs): NJEDA lends $250,000 to $10 million alongside a private lender for clean energy projects totaling $500,000 to $20 million. The application is open, though NJEDA warns funding may become oversubscribed [9].
- NJ Zero Emission Vehicle (ZEV) Financing: fixed, low-rate loans of $50,000 to $500,000 for up to 100% of eligible new commercial zero-emission vehicles. As of Oct 20, 2026, NJEDA is "temporarily pausing the submission of new applications" [10].
Financing smaller equipment under $100,000
For a few thousand to $100,000 of equipment, NJEDA-funded community lenders are worth a call. NJEDA's rules for those loans allow use for "equipment purchases, rolling stock, and operating expenses," at no more than 5% interest, with terms up to 10 years [11]. They do not allow construction or installation work above $1,999.99 [11], so a machine that needs major install work belongs in a bigger loan.
SBA microloans can also buy "Machinery" and "Equipment" up to $50,000, with up to seven years to repay [12]. A private equipment lender is often the quickest route at this size, and "lenders can be more flexible with their time in business requirements" because the equipment backs the loan [1].
How to choose for your purchase
- Match the term to the equipment's life. Do not take seven years on something that lasts three, and do not pay a short-term rate on something that lasts fifteen.
- Get one private quote and one public or SBA quote on anything over about $100,000. The rate gap on large balances adds up fast.
- Ask about the down payment and the end of the term. Some offers need no down payment; leases may end with a purchase option you need to price [1].
- Check timing. If the machine must arrive before an NJEDA or SBA closing, a short private loan refinanced later may cost more than waiting.
Business Funders's quiz takes "equipment" as the purpose and shows which of these routes fits your time in business and the size of the purchase.