{"ok":true,"canonical_url":"https://dealroom.so/glossary/fully-collateralized","api_url":"https://dealroom.so/api/public/glossary/fully-collateralized","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-collateralized","term":"Fully Collateralized","group":"The loan itself","definition":"This means the value of the assets pledged as security for the loan equals or exceeds the total loan amount. It offers the lender maximum protection if the borrower defaults.","what_it_means":"When a loan is fully collateralized, it reduces the lender's risk, making the loan more attractive. While 7(a) loans don't strictly require this, it strengthens your application. Ensure the appraisal accurately reflects asset values and understand what assets are included.","url":"https://dealroom.so/glossary/fully-collateralized","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"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"inadequate-collateral-coverage","term":"Inadequate Collateral Coverage","url":"https://dealroom.so/glossary/inadequate-collateral-coverage"},{"slug":"collateral-deficiency","term":"Collateral Deficiency","url":"https://dealroom.so/glossary/collateral-deficiency"},{"slug":"liquidation-value","term":"Liquidation Value","url":"https://dealroom.so/glossary/liquidation-value"}],"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 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"},{"question":"How long does it typically take for an SBA 7(a) loan to fully close?","url":"https://dealroom.so/sba-loans/basics/how-long-does-it-typically-take-for-an-sba-7-a-loan-to-fully-close"},{"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":"Can I sell the acquired business before the SBA loan is fully repaid without penalty?","url":"https://dealroom.so/sba-7a/questions/can-i-sell-the-acquired-business-before-the-sba-loan-is-fully-repaid-without-penalty"}]},"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 Collateralized","url":"https://dealroom.so/glossary/fully-collateralized","source_type":"DealRoom Data"}}