SBA 7(a) Q&A
Short answer
Generally, a professional license or intellectual property you developed personally cannot be valued and counted directly towards the cash equity injection for an SBA 7(a) loan.
The SBA requires equity injection to be in the form of cash, unencumbered business assets, or a seller note on full standby. While intellectual property can be a valuable asset of a business, the personal development of a license or IP does not typically qualify as a direct, quantifiable cash equity injection from the borrower's personal resources for loan purposes.
If you, as a buyer, hold a specialized professional license (e.g., medical, legal) or have personally developed a unique software algorithm, the value of that license or IP cannot be monetized and contributed as your 10% equity injection for the acquisition loan.
Insider move
Lenders need tangible, verifiable, and unencumbered equity. Intangible contributions like personal licenses or self-developed IP, while valuable to the business, do not meet the strict criteria for a capital injection from the borrower for SBA purposes.
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 what counts toward the 10%
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