Glossary · Reading the business
Tangible Fixed Asset
In short
Physical assets owned by the business that have a useful life of more than one year, such as equipment, vehicles, or real estate. These assets are important because they contribute to the business's operational capacity and can serve as collateral for your SBA loan.
What it means in a deal
When buying a business, identify and value all tangible fixed assets. Lenders use these as primary collateral for your SBA loan. Ensure the purchase price fairly reflects the condition and value of these assets, and that they are properly transferred with clear title at closing.
Related terms
Common questions about Tangible Fixed Asset
- 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 a 7(a) loan be secured by a lien on intellectual property alone if tangible assets are minimal?
- If the acquired business has no significant tangible assets, what types of *alternative* collateral might an SBA 7(a) lender require?
- Can an SBA 7(a) loan finance goodwill as a significant portion of the acquisition, even if tangible assets are minimal?
- Is a blanket lien on all business assets always required for a 7(a) loan, regardless of loan size or asset value?
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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