SBA loan basics
Short answer
Yes, cash in the business bank account can be considered as collateral, especially when combined with other business assets.
While cash is a liquid asset, a lender typically takes a lien on all business assets, including bank accounts. However, cash used for the equity injection cannot also serve as collateral. The lender will assess the stability and minimum operating balance of the cash.
A business has $50,000 in a savings account that is not part of its equity injection. The lender can take a security interest in this account as part of the overall collateral package for the SBA loan.
Lenders will want to ensure that the cash balance is stable and not critical for daily operations if a lien is to be placed. They also ensure it's not double-counted as both equity and collateral.
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.
More on collateral requirements
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