Key Takeaways
- SBA 504 loans now require 100% US citizen or national ownership as of March 1, 2026 — blocking millions of visa holders from equipment financing.
- Non-SBA equipment financing uses the asset itself as collateral, making citizenship or green card status irrelevant to approval.
- Approval decisions take 48 hours versus 60 to 90 days for SBA 504 — and you keep your working capital intact.
- Revenue-based tranche funding covers equipment purchases up to $5M for businesses generating at least $120,000 annually.
- The equipment finance market for non-citizens is growing: lenders like Bankable specialize in asset-backed deals without immigration requirements.
Equipment Financing: Non-SBA vs. SBA Comparison
| Factor | SBA 504 (Pre-March 2026) | Bankable Equipment Financing |
|---|---|---|
| Citizenship Required | Yes — 100% US citizen/national owners | No — any visa or immigration status |
| Down Payment | 10–20% of equipment cost | 0–10% depending on asset type |
| Collateral | Equipment + real estate lien | Equipment itself (self-collateralizing) |
| Decision Timeline | 60–90 days | 48 hours |
| Max Financing | $5.5M (SBA 504) | Up to $5M |
| Revenue Requirement | Meets SBA size standards | $120K+ annual revenue |
Why SBA 504 No Longer Works for Non-Citizens
The SBA 504 loan program was historically the gold standard for equipment financing and commercial real estate. It offered below-market fixed rates, long terms, and high loan amounts. But the program always came with a requirement: all owners with 20% or more equity had to be US citizens or permanent residents.
On March 1, 2026, that requirement became absolute. The new rule specifies that 100% of all owners must be US citizens or US nationals. Lawful permanent residents (green card holders) who were previously eligible are now excluded. H-1B holders, E-2 visa investors, L-1 executives, TN professionals, O-1 visa holders — all are now fully blocked from SBA 504 equipment financing.
For many non-citizen business owners, SBA 504 was the primary path to financing expensive equipment: CNC machines, restaurant kitchen buildouts, medical imaging equipment, fleet vehicles, HVAC systems. That path is now closed.
How Non-SBA Equipment Financing Works
Equipment financing outside the SBA system works on a simple principle: the asset you are purchasing serves as its own collateral. The lender evaluates the equipment's useful life, residual value, and your business's ability to generate revenue with it — not your immigration status.
At Bankable, equipment financing is structured as revenue-based tranche funding. Rather than a fixed monthly payment that can strain a new piece of equipment in its early months, funding is disbursed in tranches aligned with your projected revenue milestones. This means:
- Your first tranche covers the equipment purchase
- Subsequent tranches become available as your revenue reflects the equipment's productive output
- The final tranche releases when you hit agreed performance milestones
This structure works particularly well for businesses that need equipment to grow their revenue — manufacturing shops adding production capacity, restaurants upgrading kitchen equipment, medical practices adding diagnostic machines, contractors purchasing specialized tools.
What Equipment Qualifies
Non-SBA equipment financing covers a wide range of assets. The key criterion is that the equipment must retain value during the financing period and must be directly tied to your business's revenue generation.
- Manufacturing equipment: CNC machines, lathes, injection molding equipment, 3D printers
- Restaurant and food service: commercial ovens, refrigeration units, hood systems, dishwashers
- Medical and dental: imaging equipment, dental chairs, surgical tables, diagnostic tools
- Transportation and logistics: trucks, vans, forklifts, trailers
- Construction: excavators, skid steers, lifts, compactors
- Technology: servers, networking equipment, specialized computing hardware
- Salon and beauty: styling chairs, processing equipment, UV systems
How to Apply for Non-Citizen Equipment Financing
The application process for non-citizen equipment financing at Bankable takes approximately five minutes and does not require US citizenship documentation. Here is what to prepare:
- Equipment quote or invoice — from the vendor, showing make, model, and purchase price
- Business bank statements — last 3 to 6 months, showing revenue deposits
- Business formation documents — articles of incorporation or LLC operating agreement
- EIN confirmation — IRS EIN letter (not your SSN or ITIN)
- Visa or work authorization — copy of current visa stamp or I-797 approval notice (for our records only, not used in approval decision)
Bankable does not require a green card, citizenship certificate, or permanent resident card. We evaluate your business's revenue trajectory and the equipment's asset value. A decision is issued within 48 hours of receiving complete documentation.
Cost Comparison: Non-SBA vs. SBA 504 Equipment Financing
SBA 504 loans are known for their competitive rates — typically 2.5% to 3% above the 10-year Treasury rate. Non-SBA equipment financing carries higher rates, reflecting the absence of government backing. However, the all-in cost comparison is less clear-cut than it appears:
- SBA 504 fees: SBA guarantee fee (2.15% to 3.75%), packaging fee, closing costs — typically 2% to 4% of the loan amount added to your cost
- SBA 504 timeline: 60 to 90 days to close — during which your equipment needs go unmet and revenue is delayed
- SBA 504 personal guarantee: Full personal guarantee required from all owners
- Non-SBA equipment financing: Higher nominal rate, but faster access, lower fees, and equipment generating revenue sooner
For businesses that need equipment to operate — not just to grow — the speed advantage of non-SBA financing often outweighs the rate difference in real economic terms.
Visa-Specific Considerations for Equipment Financing
H-1B visa holders: Can finance equipment through a US business entity. The business (LLC or corporation) is the borrower. Your H-1B status governs your work authorization, not the business's ability to borrow. Learn more at H-1B SBA Alternatives.
E-2 visa investors: Equipment financing fits naturally with E-2 business development. The investment in equipment can also support visa renewal documentation by demonstrating business activity. See E-2 Visa SBA Alternatives.
L-1 visa holders: US subsidiaries of foreign companies can finance equipment independently of the parent company's financing. The US entity stands on its own revenue record.
DACA recipients: DACA holders with EADs can finance equipment through US business entities. See DACA Business Funding Alternatives.
TPS holders: Businesses owned by TPS holders are fully eligible. Revenue and asset value are the only criteria that matter.
Frequently Asked Questions
Yes. Non-SBA equipment financing does not require US citizenship or a green card. Lenders like Bankable evaluate your business revenue and the equipment's asset value. The March 2026 SBA rule change blocked access to SBA 504 loans only — the private equipment financing market remained open to all business owners regardless of immigration status.
Bankable requires a minimum of $120,000 in annual business revenue to qualify for equipment financing. There is no citizenship requirement, no green card requirement, and no SSN requirement — an EIN and business bank statements are sufficient.
Bankable issues decisions within 48 hours of receiving complete documentation. Funding typically closes within 3 to 5 business days after approval. This compares to 60 to 90 days for SBA 504 loans, making non-SBA financing faster by two to three months.
Manufacturing equipment, restaurant kitchen equipment, medical and dental devices, trucks and trailers, construction equipment, technology hardware, salon equipment, HVAC systems, and most other business-use assets qualify. The equipment must be used primarily in your business and must retain value during the financing term.
Down payment requirements vary by equipment type and business profile. Some assets — particularly those with strong residual value like commercial vehicles or medical equipment — may qualify for zero down payment financing. Others require 5 to 10%. SBA 504 required 10 to 20% down, so non-SBA financing can actually require less money upfront.
Yes. Bankable finances both new and used equipment. Used equipment financing requires a recent appraisal or dealer valuation to confirm the asset's current market value. The equipment must be in working condition and have remaining useful life exceeding the financing term.
Your equipment financing agreement is with your US business entity, not tied to your personal visa status. Changes to your visa — renewal, change of status, or even gaps in status — do not automatically affect your equipment financing. The business entity is the borrower, and the equipment is the collateral.
For non-citizens, equipment financing without SBA is the only viable path after March 2026 — SBA 504 now requires 100% US citizen ownership. Beyond eligibility, non-SBA financing offers faster decisions, lower fees, and more flexibility. The higher interest rate is the primary tradeoff, but the economic cost of waiting 60 to 90 days for SBA approval often exceeds the rate difference.
Yes. A US LLC or corporation owned entirely by non-citizens can obtain equipment financing from Bankable. The business entity must have an EIN, US business bank account, and at least $120,000 in annual revenue. The immigration status of the owners is not a factor in approval.
Bankable finances equipment purchases up to $5 million. Most small business equipment needs fall well within this range. For equipment purchases above $5 million, Bankable can discuss syndicated financing arrangements or multiple tranches structured across the acquisition timeline.