{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-professional-license-or-intellectual-property-i-developed-be-valued-and-count-toward","api_url":"https://dealroom.so/api/public/questions/can-a-professional-license-or-intellectual-property-i-developed-be-valued-and-count-toward","question":"Can a professional license or intellectual property I developed be valued and count towards the 10% equity?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Generally, a professional license or intellectual property you developed personally cannot be valued and counted directly towards the cash equity injection for an SBA 7(a) loan.","rule":"The SBA requires equity injection to be in the form of cash, unencumbered business assets, or a seller note on full standby. While intellectual property can be a valuable asset of a business, the personal development of a license or IP does not typically qualify as a direct, quantifiable cash equity injection from the borrower's personal resources for loan purposes.","example":"If you, as a buyer, hold a specialized professional license (e.g., medical, legal) or have personally developed a unique software algorithm, the value of that license or IP cannot be monetized and contributed as your 10% equity injection for the acquisition loan.","what_lenders_check":"Lenders need tangible, verifiable, and unencumbered equity. Intangible contributions like personal licenses or self-developed IP, while valuable to the business, do not meet the strict criteria for a capital injection from the borrower for SBA purposes.","required_facts":["Professional license","Intellectual property","Not equity injection","Cash/tangible assets","Personal development"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Can renovation costs for an acquired business premises count towards my required 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-renovation-costs-for-an-acquired-business-premises-count-towards-my-required-10-equity"},{"question":"Can the fair market value of equipment I already own and contribute to the acquired business count towards my equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-equipment-i-already-own-and-contribute-to-the-acquired-busine"},{"question":"Can sweat equity or future services I provide to the business count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-sweat-equity-or-future-services-i-provide-to-the-business-count-towards-the-required-e"},{"question":"Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti"},{"question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"question":"Can a substantial pre-paid rent deposit on a commercial lease count towards the equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-substantial-pre-paid-rent-deposit-on-a-commercial-lease-count-towards-the-equity-inj"}],"related_terms":[{"term":"Intellectual property","url":"https://dealroom.so/glossary/intellectual-property"},{"term":"Intellectual Property Asset","url":"https://dealroom.so/glossary/intellectual-property-asset"},{"term":"License","url":"https://dealroom.so/glossary/license"},{"term":"Business license","url":"https://dealroom.so/glossary/business-license"},{"term":"Professional Compilation","url":"https://dealroom.so/glossary/professional-compilation"},{"term":"Intellectual Capital","url":"https://dealroom.so/glossary/intellectual-capital"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-a-professional-license-or-intellectual-property-i-developed-be-valued-and-count-toward","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}