{"ok":true,"canonical_url":"https://dealroom.so/glossary/fully-collateralize","api_url":"https://dealroom.so/api/public/glossary/fully-collateralize","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":"fully-collateralize","term":"Fully collateralize","group":"The loan itself","definition":"When the total value of assets pledged as security for a loan equals or exceeds the loan amount. SBA loans often require all available business and personal assets to be pledged, even if they exceed the loan amount.","what_it_means":"For SBA 7(a) loans, lenders are required to take all available business assets and, if needed, personal assets (like real estate) to \"fully collateralize\" the loan to the maximum extent possible. Don't expect to cherry-pick which assets are pledged; the lender will secure all available collateral up to the loan amount or maximum recovery.","url":"https://dealroom.so/glossary/fully-collateralize","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-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"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":"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"},{"question":"What specific documentation is required to properly collateralize life insurance on key principals for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-properly-collateralize-life-insurance-on-key-pr"},{"question":"What are the consequences if a fully standby seller note is prematurely repaid?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-a-fully-standby-seller-note-is-prematurely-repaid"},{"question":"Can an SBA 7(a) loan fully finance the goodwill component of a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-fully-finance-the-goodwill-component-of-a-business-acquisition"}]},"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 — Fully collateralize","url":"https://dealroom.so/glossary/fully-collateralize","source_type":"DealRoom Data"}}