SBA 7(a) Q&A
Short answer
Yes, accounts receivable (A/R) generated by the business are generally considered acceptable collateral for an SBA 7(a) loan.
Accounts receivable are current assets of the business that represent money owed by customers for goods or services already delivered. The SBA typically requires a first lien on all business assets, including A/R, to secure the loan. The value assigned to A/R as collateral will depend on its quality, age, and collection history.
A service business is being acquired with $150,000 in outstanding accounts receivable. The SBA 7(a) lender will typically take a first lien on these receivables. The lender might discount the A/R value for collateral purposes, perhaps considering only 70-80% of current, collectible A/R.
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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