SBA loan basics
Short answer
You can use business assets like equipment, inventory, and real estate, and sometimes personal assets like your home, as collateral for an SBA 7(a) loan.
For SBA 7(a) loans, lenders are required to take all available assets as collateral to fully secure the loan, up to the loan amount. This includes business assets such as accounts receivable, inventory, machinery, equipment, and commercial real estate. If business assets are insufficient, available equity in personal real estate may also be required.
A business seeking a $300,000 loan might offer its $100,000 worth of equipment, $50,000 in inventory, and $150,000 in accounts receivable as collateral. If these are insufficient, the lender would then look to personal real estate.
Insider move
Lenders assess the market value and liquidity of all proposed collateral. They ensure they can perfect a security interest (e.g., file UCC liens) on these assets to protect their position in case of default.
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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