For SBA lenders
Short answer
For loans exceeding $50,000, the SBA requires the lender to take all available business assets as collateral, including real estate if offered, up to the fully secured amount.
The SBA's policy on collateral for 7(a) loans over $50,000 states that lenders must take a lien on all available business assets. If business assets do not fully secure the loan, the lender must take available equity in personal real estate (personal residence only when necessary to secure the loan, and not to decline an otherwise eligible loan).
A $200,000 7(a) loan is requested. The business has $150,000 in equipment and accounts receivable. The lender must take a first lien on all these business assets. If additional collateral is needed and available, it would be secured.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on collateral & lien requirements
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