SBA 7(a) Q&A
Short answer
A wide range of business assets can be used as collateral, including real estate, equipment, inventory, accounts receivable, and sometimes intellectual property.
The SBA requires the lender to take all available business assets with a lien position that can be perfected. This includes both tangible and, where appropriate, intangible assets. Personal assets of the principals may also be required if there's a collateral shortfall.
For a manufacturing business acquisition, collateral would include the factory building, all machinery and equipment, raw materials inventory, finished goods, and accounts receivable.
Insider move
Lenders perform collateral appraisals and search for existing liens to ensure they can secure a first lien position on all assets. They verify the value and marketability of the collateral to protect against potential loss.
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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