SBA loan basics
Short answer
Typically, collateral for an SBA 7(a) loan includes business assets like real estate, equipment, inventory, and accounts receivable, and sometimes personal assets like a home or investment property if business assets are insufficient.
Lenders are required to take all available collateral up to the loan amount. The priority is usually business assets, followed by personal real estate. The goal is to maximize recovery in case of default, supplementing the SBA's guarantee. The collateral must be reasonably available and have ascertainable value.
A manufacturing business applies for a loan. Their collateral package might include the factory building, all machinery, raw materials (inventory), and money owed to them by customers (accounts receivable). If there's still a collateral shortfall, a lien on the owner's investment property might be required.
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
Standard 7(a) Authorization File Library
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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