{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-7-a-loan-program-value-and-take-collateral-on-accounts-receivable-from-go","api_url":"https://dealroom.so/api/public/questions/how-does-the-sba-7-a-loan-program-value-and-take-collateral-on-accounts-receivable-from-go","question":"How does the SBA 7(a) loan program value and take collateral on accounts receivable from government contracts?","topic":"Collateral & lien requirements","audience":"lender","bot_mode":"lender","short_answer":"Accounts receivable from government contracts can serve as collateral, but perfecting a security interest requires compliance with the Assignment of Claims Act, which involves specific notification to government agencies.","rule":"While government contract receivables are eligible collateral, standard UCC filings alone are insufficient for perfection. The Assignment of Claims Act (31 U.S.C. § 3727 and 41 U.S.C. § 6305) requires specific written notice to the government contracting officer, the disbursing officer, and potentially other agency heads. Failure to comply can result in an unperfected lien and a guaranty repair or denial.","example":"A borrower applies for a 7(a) loan, offering accounts receivable from a federal government contract as collateral. The lender must not only file a UCC-1 but also send written notices of assignment to the relevant government contracting and disbursing officers to properly perfect its security interest.","what_lenders_check":"Lenders must be aware of the special requirements for collateralizing government receivables. Incorrect or incomplete perfection of liens on such assets could lead to a loss in the event of default and a repair to the SBA guaranty.","required_facts":["Government contracts","Accounts receivable","Assignment of Claims Act","UCC filing"],"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":"What are the specific requirements for securing a lien on titled vehicles as collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-securing-a-lien-on-titled-vehicles-as-collateral-fo"},{"question":"When can a lender justify accepting less than a 100% lien position on available business collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-justify-accepting-less-than-a-100-lien-position-on-available-business-co"},{"question":"How does the SBA require lenders to perfect security interests on accounts receivable and inventory?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-require-lenders-to-perfect-security-interests-on-accounts-receivable-and-"},{"question":"What specific collateral must be taken when a 7(a) loan is under-collateralized by business assets, even with a blanket lien?","url":"https://dealroom.so/for-lenders/questions/what-specific-collateral-must-be-taken-when-a-7-a-loan-is-under-collateralized-by-business"},{"question":"What are the specific lien priority requirements for lenders on both business and personal collateral securing a 7(a) loan, particularly when junior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-lien-priority-requirements-for-lenders-on-both-business-and-personal"},{"question":"What are the specific triggers for a lender to obtain an independent appraisal of business real estate for a 7(a) loan, based on loan amount thresholds?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-triggers-for-a-lender-to-obtain-an-independent-appraisal-of-business"}],"related_terms":[{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"Lien on Accounts Receivable","url":"https://dealroom.so/glossary/lien-on-accounts-receivable"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-7-a-loan-program-value-and-take-collateral-on-accounts-receivable-from-go","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."]}