SBA 7(a) Q&A
Short answer
If a business lacks traditional collateral, the SBA will still require a lien on all available business assets and possibly personal assets.
The SBA requires lenders to take a security interest in all available business assets to the maximum extent possible. If business assets are insufficient, the lender must take available equity in personal real estate (up to 100% LTV) when the loan amount exceeds $50,000.
For a consulting business acquisition loan of $300,000, where the primary assets are intangible (client lists, expertise), the lender would take a lien on these, and if insufficient, might require a lien on the borrower's unencumbered personal real estate.
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 2026-06-13. 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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