{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateral-description","api_url":"https://dealroom.so/api/public/glossary/collateral-description","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-description","term":"Collateral Description","group":"The loan itself","definition":"This is the detailed listing of assets pledged as security for your SBA loan. It specifies exactly what the lender can seize if you default.","what_it_means":"The collateral description is a crucial part of your loan agreement and security instruments. It must be precise enough to identify the assets, which typically include all business assets (accounts receivable, inventory, equipment, general intangibles) and often personal real estate if there's a collateral shortfall. Your lender will file a UCC lien based on this description. Ensure you understand what specific assets are encumbered by the loan, both business and personal.","url":"https://dealroom.so/glossary/collateral-description","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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"}],"related_questions":[{"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":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"What happens if my business does not have enough collateral?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-does-not-have-enough-collateral"},{"question":"Can my business's accounts receivable be used as collateral?","url":"https://dealroom.so/sba-loans/basics/can-my-business-s-accounts-receivable-be-used-as-collateral"},{"question":"Is collateral always required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-collateral-always-required-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 — Collateral Description","url":"https://dealroom.so/glossary/collateral-description","source_type":"DealRoom Data"}}