SBA 7(a) Q&A
Short answer
Yes, the SBA generally requires a first lien on all available business assets, including fixed assets, inventory, accounts receivable, and general intangibles, to secure the loan.
SBA policy mandates that lenders take a first lien position on all assets of the small business that are available and have collateral value. This "all asset" approach ensures maximum recovery in case of default, covering tangible and intangible assets, even if their individual value is small.
For a $700,000 SBA loan, the lender will file a UCC-1 statement covering all business assets, including office furniture, computers, customer lists, websites, and any intellectual property, in addition to major equipment or real estate.
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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