Glossary · Reading the business
Intellectual property
In short
These are intangible assets like patents, trademarks, copyrights, and trade secrets that a business owns. For a buyer, IP can be a significant source of value and competitive advantage.
What it means in a deal
During due diligence, identify and value the business's intellectual property. Ensure all IP is properly registered and transferred to you as part of the asset purchase. Lenders will consider strong, defensible IP as a positive factor in their collateral analysis, even if it's an intangible asset.
Related terms
Common questions about Intellectual property
- Can an SBA 7(a) loan finance the purchase of intellectual property?
- Does the value of intellectual property I already own personally count towards my equity injection?
- How does an SBA 7(a) loan handle intangible assets like intellectual property as collateral?
- Does the SBA require a lien on intellectual property, like trademarks or patents, as collateral?
- Can an SBA 7(a) loan finance the purchase of intellectual property, like patents or trademarks?
- Are intellectual property assets, like patents or trademarks, acceptable collateral for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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