SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance the purchase of intellectual property rights from a third party if it's essential for the business's operations and value.
SBA 7(a) loan proceeds can be used for the acquisition of intangible assets, including intellectual property rights, provided these assets are integral to the business's operations and generate revenue. The cost must be commercially reasonable and supported by an appraisal or other valuation, if significant.
You are acquiring a publishing business and need to secure the rights to a specific book series from a third-party author for $200,000. This cost can be included in your SBA 7(a) loan, as the IP is crucial to the business's core offering and revenue stream.
Insider move
Lenders will assess the value and importance of the intellectual property to the business's success. They will also ensure proper legal documentation for the transfer of rights and the perfection of any liens on the IP.
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 use of proceeds
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