Glossary · Reading the business
Tangible business property
In short
Tangible business property refers to physical assets like equipment, vehicles, inventory, and furniture that have a measurable value. These are assets you can touch and see, distinct from intangible assets.
What it means in a deal
When buying a business, you're acquiring its assets. Tangible property serves as collateral for your SBA loan. The lender will assess its value during due diligence and require a lien on it. Ensure the seller provides a clear list and condition report for all tangible assets to avoid surprises post-closing.
Related terms
Common questions about Tangible business property
- Can a 7(a) loan be secured by a lien on intellectual property alone if tangible assets are minimal?
- What if the business I'm buying has limited tangible assets for collateral?
- What are the typical collateral requirements if the business has very few tangible assets?
- Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?
- What is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?
- If the acquired business has no significant tangible assets, what types of *alternative* collateral might an SBA 7(a) lender require?
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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