{"ok":true,"canonical_url":"https://dealroom.so/glossary/additional-security","api_url":"https://dealroom.so/api/public/glossary/additional-security","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"additional-security","term":"Additional Security","group":"The loan itself","definition":"This refers to extra collateral lenders might require beyond the business assets to secure an SBA loan, often personal assets like real estate. It's how they reduce their risk if the business can't repay.","what_it_means":"For an SBA 7(a) loan, if the business assets don't fully cover the loan amount, the lender will seek additional security from the buyer's personal assets. This can include a second mortgage on your home. Understand that the SBA requires a personal guarantee from all 20%+ owners, and lenders will collateralize it if possible.","url":"https://dealroom.so/glossary/additional-security","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"adequately-secured","term":"Adequately Secured","url":"https://dealroom.so/glossary/adequately-secured"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"}],"related_questions":[{"question":"When is a blanket lien on all business assets *insufficient* as primary collateral for an SBA 7(a) loan, requiring additional security?","url":"https://dealroom.so/for-lenders/questions/when-is-a-blanket-lien-on-all-business-assets-insufficient-as-primary-collateral-for-an-sb"},{"question":"What happens if the business assets and my personal assets combined are insufficient collateral for a $600,000 SBA loan, requiring additional security?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-assets-and-my-personal-assets-combined-are-insufficient-colla"},{"question":"How does the SBA require lenders to perfect security interests on accounts receivable and inventory?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-require-lenders-to-perfect-security-interests-on-accounts-receivable-and-"},{"question":"How does a lender perfect a security interest in intellectual property for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-perfect-a-security-interest-in-intellectual-property-for-a-7-a-loan"},{"question":"If the seller requires a security interest, how does it affect the standby status of their note?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-requires-a-security-interest-how-does-it-affect-the-standby-status-of-their-"},{"question":"Do I have to put up my personal house as security for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-have-to-put-up-my-personal-house-as-security-for-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Additional Security","url":"https://dealroom.so/glossary/additional-security","source_type":"DealRoom Data"}}