{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-real-estate","api_url":"https://dealroom.so/api/public/glossary/personal-real-estate","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-real-estate","term":"Personal real estate","group":"Your money in the deal","definition":"This is property you own personally, like your home. Lenders often look to this as additional collateral if the business assets aren't enough to secure the SBA loan.","what_it_means":"If the business assets don't fully cover the loan amount (a collateral gap), the SBA requires lenders to take available equity in personal real estate as additional collateral from all guarantors. This is typically a second mortgage on your primary residence or a first mortgage on investment properties. Be prepared for this requirement if the deal needs more collateral.","url":"https://dealroom.so/glossary/personal-real-estate","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-gap","term":"Collateral gap","url":"https://dealroom.so/glossary/collateral-gap"},{"slug":"additional-collateral","term":"Additional collateral","url":"https://dealroom.so/glossary/additional-collateral"},{"slug":"second-mortgage","term":"Second mortgage","url":"https://dealroom.so/glossary/second-mortgage"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"}],"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":"Can funds from a personal line of credit secured by non-personal real estate be equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-line-of-credit-secured-by-non-personal-real-estate-be-equity-inj"},{"question":"Can I use proceeds from selling personal real estate as an equity injection after closing?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-selling-personal-real-estate-as-an-equity-injection-after-closing"},{"question":"When is personal real estate typically required as additional collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-personal-real-estate-typically-required-as-additional-collateral-for-a-7-a-loan"},{"question":"Is personal real estate always required as collateral for a larger SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/is-personal-real-estate-always-required-as-collateral-for-a-larger-sba-7-a-loan"},{"question":"Can personal real estate be required as collateral for a $200,000 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-personal-real-estate-be-required-as-collateral-for-a-200-000-7-a-loan"}]},"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 real estate","url":"https://dealroom.so/glossary/personal-real-estate","source_type":"DealRoom Data"}}