{"ok":true,"canonical_url":"https://dealroom.so/glossary/pledge-agreement","api_url":"https://dealroom.so/api/public/glossary/pledge-agreement","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":"pledge-agreement","term":"Pledge Agreement","group":"Doing the deal","definition":"This is the legal document that formalizes the pledging of assets as collateral for a loan. It details the specific property being offered as security.","what_it_means":"Your lender will require you to sign a pledge agreement, also known as a security agreement, listing all business assets and potentially personal assets that serve as collateral for the SBA loan. This document gives the lender a security interest and the right to perfect a lien via a UCC filing. Review it carefully to know exactly what assets are encumbered.","url":"https://dealroom.so/glossary/pledge-agreement","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":"pledge","term":"Pledge","url":"https://dealroom.so/glossary/pledge"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"ucc-filing","term":"UCC filing","url":"https://dealroom.so/glossary/ucc-filing"}],"related_questions":[{"question":"Do I always need to pledge collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-always-need-to-pledge-collateral-for-an-sba-7-a-loan"},{"question":"If the business's assets are insufficient, will I need to pledge personal assets as collateral?","url":"https://dealroom.so/sba-7a/questions/if-the-business-s-assets-are-insufficient-will-i-need-to-pledge-personal-assets-as-collate"},{"question":"Do I need to pledge personal collateral, like my home, for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-pledge-personal-collateral-like-my-home-for-an-sba-7-a-loan"},{"question":"If the business assets are not enough, will the SBA require me to pledge my primary residence as collateral for a $700,000 loan?","url":"https://dealroom.so/sba-7a/questions/if-the-business-assets-are-not-enough-will-the-sba-require-me-to-pledge-my-primary-residen"},{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"},{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"}]},"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 — Pledge Agreement","url":"https://dealroom.so/glossary/pledge-agreement","source_type":"DealRoom Data"}}