{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateral-requirement","api_url":"https://dealroom.so/api/public/glossary/collateral-requirement","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-requirement","term":"Collateral requirement","group":"The loan itself","definition":"This refers to the assets the lender requires you to pledge as security for the loan. If you default, the lender can seize and sell these assets.","what_it_means":"The SBA requires lenders to take all available business and personal collateral up to the loan amount. This often includes accounts receivable, inventory, equipment, and potentially a lien on your personal residence. Understand what assets are pledged and their liquidation value.","url":"https://dealroom.so/glossary/collateral-requirement","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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"}],"related_questions":[{"question":"Is the collateral requirement less strict for smaller SBA 7(a) loan amounts?","url":"https://dealroom.so/sba-loans/basics/is-the-collateral-requirement-less-strict-for-smaller-sba-7-a-loan-amounts"},{"question":"What is the SBA's general requirement for lien position on business collateral?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-general-requirement-for-lien-position-on-business-collateral"},{"question":"What is the requirement for a lender to ensure proper maintenance of life insurance collateral on key principals?","url":"https://dealroom.so/for-lenders/questions/what-is-the-requirement-for-a-lender-to-ensure-proper-maintenance-of-life-insurance-collat"},{"question":"Can a term life insurance policy be used for the collateral assignment requirement on an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-term-life-insurance-policy-be-used-for-the-collateral-assignment-requirement-on-an-s"},{"question":"Is profitability a strict requirement for getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-profitability-a-strict-requirement-for-getting-an-sba-7-a-loan"},{"question":"Is a blanket lien on all business assets a standard SBA requirement?","url":"https://dealroom.so/sba-7a/questions/is-a-blanket-lien-on-all-business-assets-a-standard-sba-requirement"}]},"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 requirement","url":"https://dealroom.so/glossary/collateral-requirement","source_type":"DealRoom Data"}}