SBA 7(a) Q&A
Short answer
Accounts receivable can serve as collateral for an SBA 7(a) loan, and the lender will assess their quality and collectability.
For businesses with accounts receivable, these can be pledged as collateral for the 7(a) loan. The lender will conduct due diligence to assess the age, quality, and collectability of the receivables. They typically apply a discount factor to their face value to determine their true collateral value. Only eligible receivables from creditworthy customers are considered.
You're acquiring a business with $300,000 in accounts receivable. The lender might value these at 70% of face value, or $210,000, for collateral purposes, after reviewing their aging and customer payment history.
Insider move
Lenders are concerned about the collectability and concentration of accounts receivable. They will review aging reports and customer lists to ensure the collateral is sound and not overly reliant on a few customers or prone to high delinquency.
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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