Equipment Rate Tracker · Updated Weekly

Today's Equipment Financing Rates, July 2026

Q: What are current equipment financing rates (July 2026)?

As of July 1, 2026, equipment rates by program: bank equipment loan 6.50–9.50%, SBA 7(a) equipment 9.00–9.75% (Prime + 2.25-3.0%), captive manufacturer financing 4.99–8.99%, equipment lease (operating + capital) 6.99–13.99%, sale-leaseback 8.50–12.50%. Captive financing offers tightest pricing for new equipment from major OEMs (Caterpillar, Deere, Ford, etc.).

Q: What's the difference between equipment loan and equipment lease?

Equipment LOAN: borrower owns the equipment from day 1, finances purchase with debt secured by equipment. Tax: depreciation deduction + interest deduction. Title and residual value belong to borrower. Equipment LEASE: lessor owns equipment, lessee pays use over term. Tax: lease payment deduction. Operating lease has off-balance-sheet treatment + lower payment. Capital lease (true tax lease) closer to loan economics. Sale-leaseback monetizes existing owned equipment.

Q: What's a typical Section 179 / bonus depreciation benefit?

Section 179 (2026 limit ~$1.22M deduction, $3.05M phase-out) allows immediate full expensing of qualifying equipment in year of purchase. Bonus depreciation 80% in 2026 (declining schedule from 100% in 2022). Combined: most operators expense ~85-90% of equipment cost in year 1 vs. multi-year MACRS depreciation. Reduces effective cost of equipment financing by 15-25% on tax-paying buyers. Use the PeerSense Section 179 Calculator to model your tax savings.

Q: What are SBA 7(a) equipment financing rates?

SBA 7(a) equipment rates 9.00–9.75% as of July 2026, Prime + 2.25-3.0% variable. Prime currently 6.75%. 10-year term standard for equipment, $5M maximum loan size, full recourse with personal guarantee, 10% borrower equity, SBA guarantee fee 3.5-3.75% one-time at close. Best fit: borrowers who don't qualify for conventional bank financing OR want SBA's longer term + lower equity than bank. Stackable with MARC working-capital revolver for manufacturers.

Q: What is sale-leaseback financing?

Sale-leaseback monetizes equipment a company already owns. The financier purchases the equipment at fair value, then leases it back to the original owner over a multi-year term. Effective rate 8.50-12.50%. Use cases: liquidity event without selling the operating asset, balance-sheet recap, debt refinance, growth capital. Tax treatment varies by structure (true sale + true lease vs. financing-deemed-sale). Specialized for $500K-$50M+ equipment values across manufacturing, medical, transportation, technology.

Q: What are captive manufacturer financing rates?

Captive financing rates 4.99-8.99% as of July 2026 from manufacturer-affiliated finance arms: Cat Financial, John Deere Financial, Ford Credit Commercial, GM Financial, Volvo Financial Services, Komatsu Financial, Kubota Credit, Toyota Industries Commercial Finance, Hyundai Capital Commercial, etc. Best rates available on new equipment from the captive's parent OEM. Offers 0% promotional financing during seasonal sales periods (Q4 fiscal-year-end common). Delivery + installation + service often bundled.

Q: What's the typical equipment financing term?

Equipment financing term typically matches expected useful life: heavy construction equipment (Caterpillar bulldozers, John Deere excavators) 5-7 years, medical imaging equipment (MRI, CT) 5-7 years, manufacturing equipment (CNC, injection molders) 5-10 years, IT equipment (servers, networking) 3-5 years, transportation equipment (trucks, trailers) 5-7 years, automation + robotics 7-10 years. SBA 7(a) caps at 10 years on equipment regardless of useful life.

Q: Are equipment financing rates going down in 2026?

Equipment financing rates compressed 25-50 bps from January to July 2026 as Prime fell ~25 bps and bank credit appetite for equipment lending returned. Captive financing rates compressed more (~50-75 bps) on aggressive OEM marketing programs targeting fleet replacement cycles. Forward curves suggest further 25-50 bps compression possible if Fed signals additional rate cuts. Section 179 + bonus depreciation accelerate tax-effective cost reduction independent of rate moves.

Q: What's the maximum equipment loan amount?

Equipment loan maximums by program: SBA 7(a) $5M, captive financing typically $50M+ (essentially unlimited for established borrowers), bank equipment $25M+ (relationship-driven), bank equipment + working capital combined $50M+ for established manufacturers, equipment lease $100M+ on aircraft / large industrial / medical imaging fleets. Sale-leaseback $1M-$100M+ depending on equipment fair value + lessor appetite.

Current equipment financing rates as of July 1, 2026 across bank equipment loans, SBA 7(a), captive manufacturer financing, equipment leases, and sale-leaseback. Manufacturing, medical, transportation, technology, construction equipment benchmarks. Sourced from active equipment finance lenders weekly.

Quick Answer

What are current equipment financing rates as of July 1, 2026?

As of July 1, 2026, equipment financing rates by program: bank equipment loan 6.50–9.50%, SBA 7(a) equipment 9.00–9.75%, captive manufacturer financing 4.99–8.99%, equipment lease (operating + capital) 6.99–13.99%, sale-leaseback 8.50–12.50%. Captive financing tightest for new equipment from major OEMs.

, PeerSense Capital Advisory · Updated July 1, 2026

Equipment Financing Rates by Program, July 1, 2026

As of July 1, 2026

Program	Current Rate	Term	Loan Size	Best For
Captive Manufacturer Financing	4.99–8.99%	3-7 yr	$10K – $50M+	New OEM equipment (Cat, Deere, Ford, GM, Volvo, Kubota)
Bank Equipment Loan	6.50–9.50%	3-10 yr	$50K – $25M+	Established borrowers + relationship banks
Equipment Lease (operating)	6.99–11.99%	3-7 yr	$25K – $50M+	Off-balance-sheet treatment + flexibility
Equipment Lease (capital)	7.99–12.99%	3-10 yr	$50K – $50M+	Eventually owns equipment + tax depreciation
Sale-Leaseback	8.50–12.50%	5-10 yr	$500K – $100M+	Monetize existing owned equipment
SBA 7(a) Equipment	9.00–9.75%	up to 10 yr	$50K – $5M	Borrowers who don't qualify for conventional
MARC + Equipment Stack (manufacturers)	9.00–11.00% blended	20 yr (MARC) + 10 yr (equip)	$5M MARC + $5M 7(a)	NAICS 31/32/33 manufacturers

Captive Manufacturer Financing4.99–8.99%
Term
3-7 yr
Loan Size
$10K – $50M+
Best For
New OEM equipment (Cat, Deere, Ford, GM, Volvo, Kubota)
Bank Equipment Loan6.50–9.50%
Term
3-10 yr
Loan Size
$50K – $25M+
Best For
Established borrowers + relationship banks
Equipment Lease (operating)6.99–11.99%
Term
3-7 yr
Loan Size
$25K – $50M+
Best For
Off-balance-sheet treatment + flexibility
Equipment Lease (capital)7.99–12.99%
Term
3-10 yr
Loan Size
$50K – $50M+
Best For
Eventually owns equipment + tax depreciation
Sale-Leaseback8.50–12.50%
Term
5-10 yr
Loan Size
$500K – $100M+
Best For
Monetize existing owned equipment
SBA 7(a) Equipment9.00–9.75%
Term
up to 10 yr
Loan Size
$50K – $5M
Best For
Borrowers who don't qualify for conventional
MARC + Equipment Stack (manufacturers)9.00–11.00% blended
Term
20 yr (MARC) + 10 yr (equip)
Loan Size
$5M MARC + $5M 7(a)
Best For
NAICS 31/32/33 manufacturers

Rates indicative as of July 1, 2026 across active equipment finance lenders. Captive financing rates from major OEM finance arms (Caterpillar Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial). SBA 7(a) Prime + 2.25-3.0% variable (Prime 6.75%). Section 179 (2026 limit $1.22M) + 80% bonus depreciation accelerate effective tax-cost reduction.

What Changed This Month (July 2026 vs July 2026)

Prime now at 6.75%, down significantly from 7.75–8.50% in 2024–2025. SBA 7(a) equipment rates mechanically reflect this at Prime + 2.25–3.0% = 9.00–9.75%.
Captive OEM 0% promotional financing, Caterpillar Financial + John Deere Financial running aggressive Q2 fleet replacement programs with 0% APR for 36-48 months on qualifying new equipment. Limited-time pricing.
Sale-leaseback spreads compressed 25-50 bps, institutional credit appetite for equipment-backed liquidity returned in April, particularly on manufacturing + medical imaging.
Section 179 + bonus depreciation, 2026 Section 179 limit $1.22M, 80% bonus depreciation. Combined effective expensing ~85-90% of equipment cost in year 1 for tax-paying buyers. Use the Section 179 Calculator for tax savings model.

Equipment Financing Program Comparison, July 2026

Captive Manufacturer: 4.99–8.99% (tightest on new OEM equipment)
Bank Equipment: 6.50–9.50% (relationship + flexibility)
Operating Lease: 6.99–11.99% (off-balance-sheet)
Capital Lease: 7.99–12.99% (eventually owns + tax depreciation)
Sale-Leaseback: 8.50–12.50% (liquidity from existing equipment)
SBA 7(a): 9.00–9.75% (when conventional unavailable)

When Each Program Wins

Captive financing wins on new equipment from major OEMs, tightest pricing + bundled installation/service. Bank equipment wins on established-borrower relationship + multi-asset financing. Operating lease wins on off-balance-sheet preferences + technology refresh cycles. Sale-leaseback wins on liquidity needs without selling the operating equipment. SBA 7(a) wins when conventional bank declines (sub-680 FICO, recent credit event, sub-2yr operating history) + equipment financing is needed.

Where to Go Next

Full equipment financing details at Equipment Financing. Manufacturing equipment specifics at Manufacturing Equipment Financing. Section 179 tax savings at Section 179 Calculator. Manufacturer revolving credit at SBA MARC Loan. Compare across all rate hubs at Commercial Lending Rates Hub.

Current Equipment Rates Frequently Asked Questions

What are current equipment financing rates (July 2026)?+

As of July 1, 2026, equipment rates: bank loan 6.50–9.50%, SBA 7(a) 9.00–9.75%, captive financing 4.99–8.99%, equipment lease 6.99–13.99%, sale-leaseback 8.50–12.50%. Captive financing tightest for new equipment from major OEMs.

What's the best equipment financing rate program?+

Captive manufacturer financing (Cat Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial) tightest 4.99-8.99% for new OEM equipment. Bank equipment loans 6.50-9.50% for established borrowers. SBA 7(a) 9.00–9.75% when conventional unavailable. Equipment lease 6.99-13.99% offers flexibility.

What's the difference between equipment loan and equipment lease?+

Equipment LOAN: borrower owns from day 1, finances purchase with debt, depreciation + interest deductible. Equipment LEASE: lessor owns, lessee pays use over term. Operating lease has off-balance-sheet treatment. Capital lease closer to loan economics. Sale-leaseback monetizes existing owned equipment.

What's a typical Section 179 / bonus depreciation benefit?+

Section 179 (2026 limit $1.22M deduction, $3.05M phase-out) allows immediate full expensing of qualifying equipment. Bonus depreciation 80% in 2026. Combined: most operators expense 85-90% of equipment cost in year 1. Reduces effective cost 15-25% on tax-paying buyers.

What are SBA 7(a) equipment financing rates?+

SBA 7(a) equipment rates 9.00–9.75%, Prime + 2.25-3.0% variable (Prime 6.75%). 10-year term, $5M maximum, full recourse with personal guarantee, 10% borrower equity, SBA guarantee fee 3.5-3.75%. Best fit: borrowers who don't qualify for conventional bank or want SBA's longer term.

What is sale-leaseback financing?+

Sale-leaseback monetizes equipment a company already owns. Financier purchases equipment at fair value, leases it back over multi-year term. Effective rate 8.50-12.50%. Use cases: liquidity without selling operating asset, balance-sheet recap, debt refinance, growth capital. $500K-$50M+ equipment values.

What are captive manufacturer financing rates?+

Captive financing rates 4.99-8.99% from manufacturer finance arms: Cat Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial, Komatsu Financial, Kubota Credit, Toyota Industries, Hyundai Capital. Best rates on new equipment from the captive's parent OEM. 0% promotional financing during Q4 fiscal-year-end.

What's the typical equipment financing term?+

Term matches expected useful life: heavy construction 5-7 yr, medical imaging 5-7 yr, manufacturing 5-10 yr, IT 3-5 yr, transportation 5-7 yr, automation/robotics 7-10 yr. SBA 7(a) caps at 10 years on equipment.

Are equipment financing rates going down in 2026?+

Equipment rates compressed 25-50 bps from January to July 2026 as Prime fell ~25 bps and bank credit appetite for equipment lending returned. Captive financing compressed more (~50-75 bps) on aggressive Q2 OEM marketing programs.

What's the maximum equipment loan amount?+

SBA 7(a) $5M, captive financing typically $50M+, bank equipment $25M+, equipment lease $100M+ on aircraft/large industrial/medical imaging fleets, sale-leaseback $1M-$100M+ depending on equipment fair value + lessor appetite.

Related Rate Hubs & Tools

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of July 21, 2026.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive. Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Indicative only, as of July 21, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.

Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense is a capital advisory firm, not a lender. Content is for educational purposes only. Rates and terms reflect approximate July 1, 2026 market conditions and may not reflect conditions at time of reading. Equipment financing pricing varies by equipment type, useful life, borrower credit, captive promotional programs, and tax structure. Consult an active equipment finance originator for transaction-specific quotes.