SBA 7(a) Q&A
Short answer
Personal investment accounts can be used as collateral for an SBA 7(a) loan, provided they are unencumbered, the lender can perfect a lien, and the borrower agrees to the terms.
If business assets are insufficient, lenders must seek additional collateral from guarantors. Personal investment accounts, such as brokerage accounts holding stocks, bonds, or mutual funds, can serve as collateral. The lender will require a control agreement with the brokerage firm to perfect a lien on the account. The pledged amount will typically be discounted to account for market volatility.
You need $100,000 in additional collateral. You have a brokerage account worth $150,000. The lender may take a lien on this account, possibly valuing it at $120,000 for collateral purposes, assuming a 20% discount for market fluctuations.
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 2026-06-14. 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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