{"ok":true,"canonical_url":"https://dealroom.so/glossary/tangible-asset","api_url":"https://dealroom.so/api/public/glossary/tangible-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":"tangible-asset","term":"Tangible asset","group":"Reading the business","definition":"Physical assets you can touch and value, such as equipment, inventory, and real estate. Buyers care because these assets provide collateral for your loan, contribute to the business's liquidation value, and are essential for operations.","what_it_means":"When acquiring a business, you'll assess its tangible assets to understand their value, condition, and how they secure the SBA loan. Lenders will appraise these assets as part of their collateral analysis, especially if the business has substantial equipment or inventory that can be liquidated. Understand the fair market value.","url":"https://dealroom.so/glossary/tangible-asset","official_sources":[],"related":[{"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"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"}],"related_questions":[{"question":"What if the business I'm buying has limited tangible assets for collateral?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-limited-tangible-assets-for-collateral"},{"question":"What are the typical collateral requirements if the business has very few tangible assets?","url":"https://dealroom.so/sba-7a/questions/what-are-the-typical-collateral-requirements-if-the-business-has-very-few-tangible-assets"},{"question":"Can a 7(a) loan be secured by a lien on intellectual property alone if tangible assets are minimal?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-be-secured-by-a-lien-on-intellectual-property-alone-if-tangible-assets-are-"},{"question":"If the acquired business has no significant tangible assets, what types of *alternative* collateral might an SBA 7(a) lender require?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-no-significant-tangible-assets-what-types-of-alternative-coll"},{"question":"Can an SBA 7(a) loan finance goodwill as a significant portion of the acquisition, even if tangible assets are minimal?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-goodwill-as-a-significant-portion-of-the-acquisition-even-if-t"},{"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 — Tangible asset","url":"https://dealroom.so/glossary/tangible-asset","source_type":"DealRoom Data"}}