# Can you sell or replace equipment pledged on an SBA loan?

**Short answer:** Not without the lender's prior written consent, unless the sale is in the ordinary course of business. Lenders may not charge a fee for releasing or exchanging collateral, apart from out-of-pocket costs. Sources: SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.8.b; Sec. A, Ch. 4, Para. C.2.b.

Canonical page: https://www.sbaexpress.loans/answers/can-you-sell-or-replace-equipment-pledged-on-an-sba-loan/
Last checked: 2026-11-09

Not on your own. You certified before disbursement that you would not sell, lease, pledge, encumber or dispose of property or assets without the lender's prior written consent. Sales in the ordinary course of business are excepted, as are purchase money liens on later-acquired property (SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.8.b).

## What it costs

A lender may not collect a fee for the release or exchange of collateral. Standard out-of-pocket expenses, such as recording fees, are permitted (Sec. A, Ch. 4, Para. C.2.b).

## What the lender can do

SBA Form 148 lets a lender substitute or release collateral without a guarantor's consent (para. 4). The form says that does not reduce the guarantor's obligation.

## 504 loans

A non-PCLP Certified Development Company (CDC) needs SBA's prior written consent for larger collateral releases. The test is cumulative market value over 10% of the debenture or $10,000, whichever is less (13 CFR 120.536(b)(2)).

## 7(a) approval route

Whether your lender needs SBA's approval for a release depends on SOP 50 57 and SBA's Lender Matrix. Those documents are not among the sources behind this page.

## What to bring the lender

Describe the item, the price and where the proceeds will go. If you are replacing equipment, ask how the new item will be pledged. Keep hazard insurance on remaining collateral (Sec. A, Ch. 5, Para. C.1).

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.8.b (about p. 215)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.2.b (about pp. 68-69)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. C.1 (p. 97)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.536](https://www.ecfr.gov/current/title-13/section-120.536)
- [SBA Form 148, Unconditional Guarantee](https://legacy.sba.gov/document/sba-form-148-unconditional-guarantee)