SBA 7(a) Q&A
Short answer
SBA 7(a) loans can finance intellectual property (IP) as a major asset, considering it part of the overall business value and collateral.
Intellectual property, such as patents, copyrights, trademarks, and proprietary software, contributes to the value of a business and can be recognized as collateral for an SBA 7(a) loan. A qualified appraisal is often required to establish its fair market value and inclusion in the collateral base.
A buyer acquires a software company for $1,500,000, where proprietary software and patents represent $1,000,000 of the value. The SBA loan would be secured by a lien on these intellectual property assets as part of the overall business collateral.
Insider move
Lenders will require a robust valuation of the intellectual property by an experienced appraiser to determine its marketable value. They will also assess the enforceability and longevity of the IP rights, as well as the buyer's ability to leverage these assets for future revenue.
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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