$27 · Instant download · Verified vs SOP 50 10 8.1
What your collateral is actually worth to the bank
Lenders do not count your assets at what you paid. Enter what the deal brings and see the discounted value they actually credit, and whether your personal real estate comes into play.
The rule almost nobody tells borrowers: a 7(a) loan is never declined solely because collateral is inadequate. SOP 50 10 8.1 says so in Appendix 19. What a shortfall does trigger on a business purchase is a lien on available equity in personal real estate, residential or investment, solely owned by any co-borrower, guarantor, or owner of 20% or more. If your equity in a property is under 25% of its fair market value, it is not required to be liened at all. This worksheet shows you exactly where you land.
Built to answer in under a minute. Six inputs at most, already filled in with typical numbers for your industry, and the verdict sits at the top in plain words. The supporting math is underneath if you want to check it, and you never have to open it if you do not.
What it computes
- ✓ Every asset class at its real SOP rate: new equipment 75% of price, used 50% of book (or 80% with an orderly liquidation appraisal), furniture and fixtures 10%, inventory and receivables 10%
- ✓ Real estate counted as equity, fair market value less prior liens
- ✓ Your total lender-counted collateral against the loan amount
- ✓ A fully-secured or shortfall verdict, with the shortfall in dollars
- ✓ Plain English on what a shortfall triggers, and the under-25%-equity exemption
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Get the worksheet, $27Excel file, instant download after checkout. Formulas open so you can see and defend every number.
Need more than this one answer? The full Will the SBA Fund This Deal kit is $67 right now, normally $97, and includes all of these plus the five-year projections and the lender-ready package. Three separate tools already cost more than that, so if you are weighing three or more, start there instead.
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The free calculators cover the individual pieces: payment, down payment, and guaranty fee. This worksheet exists because the free version does not break out every asset class or show the personal-real-estate consequence.
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Frequently Asked Questions
Will the bank take my house for an SBA loan?
Only if business collateral does not cover the loan. On a business purchase with a shortfall, the lender must take available equity in personal real estate solely owned by any co-borrower, guarantor, or owner of 20% or more. If your equity is under 25% of the property's fair market value, no lien is required.
Can an SBA loan be declined for insufficient collateral?
No. SOP 50 10 8.1 (Appendix 19) states that a loan request must not be declined solely because collateral is inadequate.
How do lenders value equipment as SBA collateral?
At a discount to what you paid. Used equipment counts at up to 50% of net book value, or 80% with an orderly liquidation appraisal. Furniture and fixtures count at roughly 10% of net book value. On a business purchase the lender must also take a lien on the business's receivables and inventory, counted at no more than 10% of book value.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.