SBA 7(a) Q&A
Short answer
The SBA requires a lien on all available business assets, which can include intellectual property like trademarks or patents, especially if they represent significant value to the business.
When a business possesses valuable intangible assets such as patents, trademarks, or copyrights, the SBA requires lenders to take a security interest in these assets as part of the loan collateral. This ensures that all available value is secured, particularly when tangible assets are insufficient to cover the loan amount.
If you are acquiring a tech company for $1,500,000 with a $1,300,000 SBA loan, and a significant portion of its value comes from proprietary software and patents, the lender would take a lien on these intellectual property assets as part of the collateral package.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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