What collateral does an SBA loan require at each loan size?

At $50,000 or less, most small-loan programs require no collateralcollateralProperty a lender can take and sell if a loan is not repaid. . Standard 7(a) loans of more than $350,000 must be fully secured. SOP 50 10 8.1, App. 19, Para. B, sets these floors:

• 7(a) Small, $50,000 or less. No collateral required. The lender may take some under its own policies.
• 7(a) Small, above that line up to $350,000. A first lien on assets the loan finances. If 50% or more of proceeds are working capital, the lender also takes all fixed assets until the loan is fully secured.
• SBA Express, $50,000 or less. No collateral required.
• SBA Express, above that line up to $500,000. The General Requirements apply, but the lender may use its own collateral policies for similar non-SBA loans.
• Standard 7(a), more than $350,000. The loan must be fully secured. A shortfall requires available equity in personal real estate.
• CAPLines, $50,000 or less. No collateral required. Larger lines follow the variant rules in Para. B.5.
• Export Express, $50,000 or less. No collateral required. Above that, the lender's written policies apply (Para. B.6).

Two cases fall outside this list:

• Buying a business. Appendix 15 governs. A 7(a) Small or SBA Express loan used for a purchase must meet its fully secured definition (Sec. B, Ch. 2, Para. A.2).
• 504 loans. The Certified Development Company usually takes a second lien on the project property, and sometimes more (13 CFR § 120.934).

These are SBA minimums. Your lender's policy can ask for more within the rules, so ask early what it will want.