SBA loan basics
Short answer
Yes, if your business lacks significant physical assets, the SBA 7(a) program can still be an option. Lenders will first take a lien on all available business assets, and if there's still a shortfall, they may require a lien on personal real estate.
The SBA's policy is that lenders should not decline a loan solely for lack of collateral if the business has strong cash flow and repayment ability. However, all available business assets must be pledged. If those are insufficient to secure the loan, and the loan amount exceeds $50,000, lenders must consider taking a lien on available personal real estate with equity.
A software development company with strong cash flow needs a $300,000 loan but only has $50,000 in equipment. The lender will take a lien on the equipment and may require a second mortgage on the owner's home, which has $200,000 in equity.
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
SBA 7(a) Loans Overview
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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