{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateralization","api_url":"https://dealroom.so/api/public/glossary/collateralization","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":"collateralization","term":"Collateralization","group":"The loan itself","definition":"This is the process of pledging assets, like the business's equipment or real estate, to secure a loan. For your SBA 7(a) loan, the SBA requires sufficient collateral to protect the lender in case you default, making it a critical aspect of loan approval.","what_it_means":"Your SBA 7(a) loan will be collateralized by all business assets and often personal assets if the business assets aren't enough. The lender will conduct a Collateral analysis to determine what's available. Understand what you're pledging and ensure the valuation is fair.","url":"https://dealroom.so/glossary/collateralization","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":"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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[]},"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 — Collateralization","url":"https://dealroom.so/glossary/collateralization","source_type":"DealRoom Data"}}