# Must SBA lenders take receivables and inventory as collateral?

**Short answer:** On a Standard 7(a) loan it is the lender's choice, and those assets count at no more than 10% of book value. On a loan to buy a business, the lender must take them. Source: SOP 50 10 8.1, App. 19, Para. B.1; App. 15, Para. C.3.

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Last checked: 2026-11-08

It is the lender's choice on a Standard 7(a) loan and a requirement on a loan to buy a business. The lender can take trading assets, meaning receivables and inventory, or leave them free for a line of credit. That choice is in SOP 50 10 8.1, App. 19, Para. B.1. If the lender takes them, no more than 10% of current book value counts toward fully secured.

Other programs set their own rule:

- **Loans to buy a business.** The lender must take a security interest in the receivables and inventory of the operating entity. No more than 10% of current book value counts (App. 15, Para. C.3.d).
- **7(a) Small loans.** SBA does not require trading assets, but a lender may take them (App. 19, Para. B.2).
- **7(a) Manufacturers' Access to Revolving Credit (MARC) loans.** The lender must file a UCC-1 lien on all business assets and hold a first lien on trading assets (App. 19, Para. B.4).
- **Working Capital CAPLines.** The lender must obtain a first lien on working or trading assets (App. 19, Para. B.5).

## Why this matters for a line of credit

Trading assets pledged to a term lender are harder to pledge again. If you expect to need a revolving line, raise it before closing.

SBA's rules allow for this. It is not piggyback financing when both loans fund working capital and the non-SBA loan is secured only by working or trading assets (App. 19, Para. A.1). On a business purchase, a line can take first position on those assets only under the conditions in App. 15, Para. C.3.d.

## Sources

- [SOP 50 10 8.1, App. 19, Paras. A.1, B.1, B.2, B.4 and B.5 (App. 19 begins p. 404)](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, App. 15, Para. C.3.d (Para. C begins p. 371)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)