SBA 7(a) Q&A
Short answer
Yes, intellectual property assets such as patents, trademarks, and copyrights can be acceptable collateral for an SBA 7(a) loan, especially if they are a significant component of the business's value.
While fixed assets like real estate and equipment are preferred, the SBA permits lenders to take liens on intellectual property when it's available and has verifiable value. An independent appraisal is often required to establish the fair market value of such intangible assets.
A buyer acquires a software company whose primary assets are proprietary code and patents. The SBA lender secures a first lien on these patents and copyrights as part of the collateral package, alongside other available business assets, after an independent valuation.
Insider move
Lenders assess the enforceability, market value, and transferability of intellectual property. They require a professional appraisal to value these assets and ensure proper legal filings (e.g., UCC filings) to perfect their security interest.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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