SBA 7(a) Q&A
Short answer
Yes, patents, trademarks, and other intellectual property (IP) can be considered eligible collateral for an SBA 7(a) loan, especially if they are key assets of the acquired business.
The SBA considers all available business assets as collateral, which includes intellectual property. While harder to value and liquidate than tangible assets, IP can represent significant value. Lenders will typically require a UCC filing on these intangible assets.
When acquiring a software company, its proprietary code (protected by patents) and brand name (trademarked) would be listed as collateral in the loan agreement, alongside other business assets.
Insider move
Lenders evaluate the actual market value and transferability of IP, often requiring expert valuation. They must ensure proper legal steps are taken to perfect their security interest, which can be more complex for intangible assets.
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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