{"ok":true,"canonical_url":"https://dealroom.so/glossary/hard-asset","api_url":"https://dealroom.so/api/public/glossary/hard-asset","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"hard-asset","term":"Hard Asset","group":"Reading the business","definition":"These are tangible assets, like real estate, machinery, or inventory, that have a physical form and can be valued. They are often strong collateral for loans.","what_it_means":"When buying a business, identify its hard assets as they provide substantial collateral for your SBA loan. Lenders prefer businesses with significant hard assets because they have a clear liquidation value, reducing the lender's risk. Appraisals will determine their fair market value.","url":"https://dealroom.so/glossary/hard-asset","official_sources":[],"related":[{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"}],"related_questions":[{"question":"If the acquired business has minimal hard assets, how does the SBA ensure adequate collateral?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-minimal-hard-assets-how-does-the-sba-ensure-adequate-collater"},{"question":"What happens if my business has very few hard assets to offer as loan collateral?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-has-very-few-hard-assets-to-offer-as-loan-collateral"},{"question":"If the business has no hard assets, what kind of collateral will an SBA 7(a) loan require?","url":"https://dealroom.so/sba-7a/questions/if-the-business-has-no-hard-assets-what-kind-of-collateral-will-an-sba-7-a-loan-require"},{"question":"What constitutes sufficient collateral when a 7(a) loan is primarily for working capital with few hard assets?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-sufficient-collateral-when-a-7-a-loan-is-primarily-for-working-capital-wi"},{"question":"If the business has minimal hard assets, what types of alternative collateral might a lender require for the SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/if-the-business-has-minimal-hard-assets-what-types-of-alternative-collateral-might-a-lende"},{"question":"Is a blanket lien on all business assets always required for a 7(a) loan, regardless of loan size or asset value?","url":"https://dealroom.so/for-lenders/questions/is-a-blanket-lien-on-all-business-assets-always-required-for-a-7-a-loan-regardless-of-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Hard Asset","url":"https://dealroom.so/glossary/hard-asset","source_type":"DealRoom Data"}}