{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-typically-value-intangible-assets-like-customer-lists-or-software-for-col","api_url":"https://dealroom.so/api/public/questions/how-does-the-sba-typically-value-intangible-assets-like-customer-lists-or-software-for-col","question":"How does the SBA typically value intangible assets like customer lists or software for collateral?","topic":"Collateral","audience":"borrower","bot_mode":"buyer","short_answer":"Intangible assets like customer lists or proprietary software are typically valued by a qualified appraiser, but often hold secondary collateral value compared to tangible assets.","rule":"While the SBA requires a lien on all available business assets, including intangibles, their collateral value is generally less liquid and harder to realize in a liquidation event. A qualified, independent appraiser may be required to establish a fair market value for such assets, which is then often heavily discounted by the lender.","example":"For a tech company acquisition, a proprietary software platform might be valued at $500,000 by an industry expert. However, a lender might discount this significantly, perhaps considering only 20-30% of that value as effective collateral due to its specialized nature and difficulty of resale.","what_lenders_check":"Lenders are cautious with intangible collateral due to its illiquidity and specialized nature. They focus on the going-concern value rather than liquidation value, and often require additional tangible collateral or personal guarantees to offset the risk.","required_facts":["Qualified appraisal","Discounted collateral value","Liquidation challenges","Secondary collateral"],"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 requirements for pledging inventory as collateral for an SBA 7(a) loan for a retail business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-pledging-inventory-as-collateral-for-an-sba-7-a-loan-for-a-r"},{"question":"If the business assets are not enough, will the SBA require me to pledge my primary residence as collateral for a $700,000 loan?","url":"https://dealroom.so/sba-7a/questions/if-the-business-assets-are-not-enough-will-the-sba-require-me-to-pledge-my-primary-residen"},{"question":"Does an SBA 7(a) loan typically require collateral beyond the business assets?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-typically-require-collateral-beyond-the-business-assets"},{"question":"How does an SBA 7(a) loan handle intangible assets like intellectual property as collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-handle-intangible-assets-like-intellectual-property-as-collateral"},{"question":"What types of assets can be used as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-types-of-assets-can-be-used-as-collateral-for-an-sba-7-a-loan"},{"question":"What if my personal residence is already mortgaged; can it still be used as collateral?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-residence-is-already-mortgaged-can-it-still-be-used-as-collateral"}],"related_terms":[{"term":"Customer Lists","url":"https://dealroom.so/glossary/customer-lists"},{"term":"Intangible value","url":"https://dealroom.so/glossary/intangible-value"},{"term":"Collateral Value","url":"https://dealroom.so/glossary/collateral-value"},{"term":"Proprietary Software","url":"https://dealroom.so/glossary/proprietary-software"},{"term":"Cost or Market Value","url":"https://dealroom.so/glossary/cost-or-market-value"},{"term":"Repair or denial of the SBA guaranty","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty"}],"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/how-does-the-sba-typically-value-intangible-assets-like-customer-lists-or-software-for-col","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."]}