{"ok":true,"canonical_url":"https://dealroom.so/glossary/tangible-business-property","api_url":"https://dealroom.so/api/public/glossary/tangible-business-property","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-business-property","term":"Tangible business property","group":"Reading the business","definition":"Tangible business property refers to physical assets like equipment, vehicles, inventory, and furniture that have a measurable value. These are assets you can touch and see, distinct from intangible assets.","what_it_means":"When buying a business, you're acquiring its assets. Tangible property serves as collateral for your SBA loan. The lender will assess its value during due diligence and require a lien on it. Ensure the seller provides a clear list and condition report for all tangible assets to avoid surprises post-closing.","url":"https://dealroom.so/glossary/tangible-business-property","official_sources":[],"related":[{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"}],"related_questions":[{"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":"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 an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"},{"question":"What is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-tangible-net-worth-for-a-business-to-be-considered-small-under-the-alt"},{"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"}]},"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 business property","url":"https://dealroom.so/glossary/tangible-business-property","source_type":"DealRoom Data"}}