{"ok":true,"canonical_url":"https://dealroom.so/glossary/adequately-secured","api_url":"https://dealroom.so/api/public/glossary/adequately-secured","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":"adequately-secured","term":"Adequately Secured","group":"The loan itself","definition":"An SBA loan is \"adequately secured\" when the collateral, including business assets and any additional security, is sufficient to cover the loan amount. This is a key requirement for SBA approval.","what_it_means":"The SBA requires all 7(a) loans to be adequately secured, meaning the lender must have enough collateral to protect against default. If primary business assets aren't enough, they'll look to additional security from the guarantors. If the loan is not adequately secured, the SBA will reduce its guaranty percentage or decline the loan.","url":"https://dealroom.so/glossary/adequately-secured","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":"additional-security","term":"Additional Security","url":"https://dealroom.so/glossary/additional-security"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"}],"related_questions":[{"question":"Is a loan secured by personal assets eligible for the down payment?","url":"https://dealroom.so/sba-7a/questions/is-a-loan-secured-by-personal-assets-eligible-for-the-down-payment"},{"question":"Can a seller note on full standby still be secured by business assets?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-still-be-secured-by-business-assets"},{"question":"Can a seller note on full standby still be secured by specific business assets?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-still-be-secured-by-specific-business-assets"},{"question":"Can I use a secured personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-secured-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can a secured personal loan from a non-SBA bank count as my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-secured-personal-loan-from-a-non-sba-bank-count-as-my-equity-injection"},{"question":"Can funds from a personal line of credit secured by non-personal real estate be equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-line-of-credit-secured-by-non-personal-real-estate-be-equity-inj"}]},"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 — Adequately Secured","url":"https://dealroom.so/glossary/adequately-secured","source_type":"DealRoom Data"}}