SBA loan basics
Short answer
Banks typically look for all available business assets as collateral, including real estate, equipment, inventory, accounts receivable, and sometimes intellectual property. Personal assets, like a home, may be required if business assets are insufficient.
The SBA requires lenders to take a security interest in all available business assets. This ensures maximum recovery in case of default. If the business assets do not fully secure the loan, the lender must also consider taking available equity in personal assets, starting with owner-occupied personal real estate.
For a manufacturing business, the collateral might include the factory building, machinery, raw materials, finished goods inventory, and outstanding customer invoices. If these aren't enough, the owner's personal home with equity might also be pledged.
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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