SBA loan basics
Short answer
The SBA requires all available business assets as collateral, which can include real estate, equipment, inventory, accounts receivable, and sometimes personal assets if a shortfall exists.
Lenders must secure the loan with all available assets of the business, including fixed assets (real estate, machinery), current assets (inventory, accounts receivable), and intangible assets (if they have ascertainable value). If business assets are insufficient, personal assets may be required.
A manufacturing business would typically offer its factory building, machinery, raw materials, finished goods, and customer invoices as collateral for an SBA 7(a) loan. If these collectively don't cover the loan, the owner might pledge personal real estate.
Lenders prioritize obtaining a first lien position on all major business assets. They perform appraisals and valuations to determine asset values and ensure proper documentation, like UCC filings, to perfect their security interests.
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.
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