SBA loan basics
Short answer
A wide range of assets can serve as collateral for an SBA 7(a) loan, including commercial real estate, machinery and equipment, inventory, accounts receivable, and sometimes personal assets like a home.
Lenders must take an available security interest in all business assets to the extent commercially reasonable. This includes fixed assets (real estate, equipment), current assets (inventory, accounts receivable), and intangible assets (if valued). Personal guarantees from owners of 20% or more are always required, and personal real estate may be pledged if other collateral is insufficient.
A manufacturing company applying for an SBA 7(a) loan would typically offer its factory building, production machinery, raw materials, finished goods inventory, and outstanding customer invoices as collateral.
Insider move
Lenders assess the market value and liquidity of all proposed collateral. They ensure proper documentation and perfection of liens (UCC filings, mortgage deeds) to secure their interest in the assets.
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
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day