SBA 7(a) Q&A
Short answer
Yes, customer contracts and recurring revenue streams can be considered as part of the "general intangibles" collateral, but their valuation and enforceability are key.
The SBA requires a lien on all available business assets, which includes general intangibles. While not valued as highly as tangible assets, steady, predictable revenue from long-term customer contracts or subscription models can contribute to the overall collateral pool and repayment capacity.
A software-as-a-service (SaaS) business being acquired has $500,000 in annual recurring revenue from multi-year customer contracts. The lender will take a lien on these contracts as part of the business's general intangibles.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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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