SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance the purchase of intellectual property (IP) as part of a business acquisition, as it's considered an intangible asset contributing to the business's value.
Intellectual property such as patents, trademarks, copyrights, and proprietary software are considered assets that contribute to the value of a business. Their purchase can be financed as part of a business acquisition, often falling under the goodwill component.
If you are acquiring a tech startup for $1,500,000, and $500,000 of the purchase price is specifically allocated to its proprietary software and patents, an SBA loan can cover this portion, provided the valuation is supported.
Insider move
Lenders will require a thorough valuation that justifies the price allocated to intellectual property. They need to ensure the IP is truly valuable, transferable, and integral to the ongoing operations and cash flow of the business.
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 goodwill financing
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