SBA 7(a) Q&A
Short answer
Yes, intellectual property such as patents, trademarks, or proprietary software can be accepted as collateral, but requires a specialized valuation and proper legal documentation to secure the lien.
While tangible assets are preferred, the SBA recognizes that intangible assets, including intellectual property, can hold significant value for certain businesses. Lenders may accept these as collateral, provided their value is independently appraised and a legally enforceable security interest can be perfected.
A technology startup acquiring a competitor might use its existing patents, valued at $500,000 by an independent expert, as part of the collateral package for an SBA 7(a) loan.
Insider move
Lenders require specialized appraisals for IP and scrutinize the legal enforceability of their lien on such assets, which can be complex. They ensure the valuation is conservative and well-supported.
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.
More on collateral
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day