SBA 7(a) Q&A
Short answer
Intangible assets like intellectual property can be taken as collateral for an SBA 7(a) loan, especially if tangible assets are insufficient, but their valuation can be complex.
While tangible assets are preferred, the SBA permits taking liens on intangible assets such as patents, trademarks, copyrights, and customer lists when feasible. Lenders must perfect their security interest according to state law (UCC filings) and verify their value.
A tech company acquiring a software firm with minimal physical assets, but valuable patents and proprietary code, would use these intellectual properties as primary collateral, secured by UCC filings.
Insider move
Lenders often require specialized appraisals for significant intangible assets to determine their true market value. They also ensure that the intellectual property is properly registered and that they can perfect a lien on it.
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.
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