SBA 7(a) Q&A
Short answer
Intangible assets like customer lists or proprietary software are typically valued by a qualified appraiser, but often hold secondary collateral value compared to tangible assets.
While the SBA requires a lien on all available business assets, including intangibles, their collateral value is generally less liquid and harder to realize in a liquidation event. A qualified, independent appraiser may be required to establish a fair market value for such assets, which is then often heavily discounted by the lender.
For a tech company acquisition, a proprietary software platform might be valued at $500,000 by an industry expert. However, a lender might discount this significantly, perhaps considering only 20-30% of that value as effective collateral due to its specialized nature and difficulty of resale.
Insider move
Lenders are cautious with intangible collateral due to its illiquidity and specialized nature. They focus on the going-concern value rather than liquidation value, and often require additional tangible collateral or personal guarantees to offset the risk.
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.
More on collateral
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day