{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-collateral","api_url":"https://dealroom.so/api/public/glossary/personal-collateral","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":"personal-collateral","term":"Personal Collateral","group":"Doing the deal","definition":"This refers to personal assets, such as your home or investment accounts, that you pledge to secure the SBA loan. It provides the lender with additional security beyond the business assets.","what_it_means":"If the business assets don't fully cover the loan amount (a collateral shortfall), the lender will require personal collateral from all guarantors. This most commonly involves a second mortgage on your primary residence. Understand that this puts your personal assets at risk if the business defaults.","url":"https://dealroom.so/glossary/personal-collateral","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":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"primary-residence","term":"Primary Residence","url":"https://dealroom.so/glossary/primary-residence"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"When is personal real estate typically required as additional collateral?","url":"https://dealroom.so/sba-7a/questions/when-is-personal-real-estate-typically-required-as-additional-collateral"},{"question":"Is personal collateral always required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-personal-collateral-always-required-for-an-sba-7-a-loan"},{"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":"Does the SBA take a lien on my personal home as collateral?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-take-a-lien-on-my-personal-home-as-collateral"},{"question":"Is a personal guarantee required even if my business has lots of collateral?","url":"https://dealroom.so/sba-loans/basics/is-a-personal-guarantee-required-even-if-my-business-has-lots-of-collateral"},{"question":"Can a lien on my personal vehicle or other personal property be required as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-lien-on-my-personal-vehicle-or-other-personal-property-be-required-as-collateral-for"}]},"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 — Personal Collateral","url":"https://dealroom.so/glossary/personal-collateral","source_type":"DealRoom Data"}}