SBA loan basics
Short answer
You can use various business assets like real estate, equipment, inventory, and accounts receivable as collateral. Personal assets, such as your home, may also be required if business assets are insufficient.
Lenders are required to take an available lien on all business assets as collateral for an SBA 7(a) loan, up to the maximum extent possible. This can include business real estate, machinery, equipment, vehicles, inventory, and accounts receivable. If the available business assets do not fully secure the loan, the lender must take available equity in personal real estate (such as the owner's home) if there is sufficient value to secure the loan.
A printing company applies for a $600,000 loan. They offer their printing presses, delivery vans, and accounts receivable as business collateral. The lender determines these assets secure $400,000 of the loan. The remaining $200,000 would require additional collateral, potentially a lien on the owner's personal residence if there is enough 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 2026-06-14. 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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