{"ok":true,"canonical_url":"https://dealroom.so/glossary/hard-assets","api_url":"https://dealroom.so/api/public/glossary/hard-assets","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-assets","term":"Hard assets","group":"Reading the business","definition":"Physical, tangible items like equipment, real estate, and inventory. These are important because they often serve as collateral for your SBA loan and contribute to the business's value.","what_it_means":"When buying a business, hard assets are crucial for your collateral analysis. Lenders will appraise these assets to determine their liquidation value, which directly impacts the loan's collateral coverage. Make sure all significant hard assets are included in the asset purchase agreement.","url":"https://dealroom.so/glossary/hard-assets","official_sources":[],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"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":"Do I need personal assets to secure the loan if the business assets are sufficient?","url":"https://dealroom.so/sba-loans/basics/do-i-need-personal-assets-to-secure-the-loan-if-the-business-assets-are-sufficient"}]},"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 assets","url":"https://dealroom.so/glossary/hard-assets","source_type":"DealRoom Data"}}