For SBA lenders
Short answer
For virtual businesses with minimal physical assets, lenders must secure a first lien on all available intangible assets, cash, and receivables, and often require additional collateral or strong guarantors.
Even for virtual businesses, the SBA requires a first lien on all available business assets. This shifts the focus to intangible assets such as intellectual property (e.g., software, websites), customer lists, contracts, accounts receivable, and cash. Lenders must perform due diligence to value these assets, but often also require other forms of collateral, such as personal real estate, or rely heavily on strong cash flow and personal guaranties due to the limited tangible collateral.
A successful online consulting firm seeks a $400,000 7(a) loan. It has no physical office or equipment. The lender would take a first lien on its website, domain names, client contracts, and accounts receivable. Due to the lack of tangible assets, the lender would likely also require a lien on the owner's personal residence as additional collateral to meet prudent lending standards.
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.
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