{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateral","api_url":"https://dealroom.so/api/public/glossary/collateral","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":"collateral","term":"Collateral","group":"The loan itself","definition":"Collateral is an asset pledged to a lender to secure a loan. If you default, the lender can seize and sell the collateral to recover their money.","what_it_means":"For an SBA 7(a) loan, the business assets you acquire, like equipment, inventory, and accounts receivable, serve as primary collateral. The SBA also requires a personal guarantee from all owners, and if other assets are available, a lien may be placed on those too to cover any collateral shortfall.","url":"https://dealroom.so/glossary/collateral","official_sources":[{"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"},{"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"}],"related":[{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"}],"related_questions":[{"question":"What specific collateral must be taken when a 7(a) loan is under-collateralized by business assets, even with a blanket lien?","url":"https://dealroom.so/for-lenders/questions/what-specific-collateral-must-be-taken-when-a-7-a-loan-is-under-collateralized-by-business"},{"question":"What happens if business assets are insufficient to fully collateralize the SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-business-assets-are-insufficient-to-fully-collateralize-the-sba-7-a-loan"},{"question":"What happens if the business assets are insufficient to fully collateralize my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-assets-are-insufficient-to-fully-collateralize-my-sba-7-a-loa"},{"question":"Can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-the-rem"},{"question":"When can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/when-can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-th"},{"question":"What happens if the business assets are not enough to fully collateralize the SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-assets-are-not-enough-to-fully-collateralize-the-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 — Collateral","url":"https://dealroom.so/glossary/collateral","source_type":"DealRoom Data"}}