SBA 7(a) Q&A
Short answer
Outstanding Accounts Receivable (AR) are typically considered business collateral, but their quality and collectability will be thoroughly assessed by the lender.
SBA lenders take a lien on all business assets, including AR. However, they will discount the value of AR based on its age and collectability. Aged or uncollectible AR will have little to no collateral value.
If the business you're buying has $150,000 in Accounts Receivable, but $50,000 of that is over 90 days past due, the lender might only give collateral credit for the remaining $100,000 or even less, depending on their assessment of the debtor's payment history.
Insider move
Lenders perform an AR aging analysis and may conduct verifications to determine the true value and collectability of the receivables. They want to ensure the collateral value is realistic and not overstated.
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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