{"ok":true,"canonical_url":"https://dealroom.so/glossary/pledge-collateral","api_url":"https://dealroom.so/api/public/glossary/pledge-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":"pledge-collateral","term":"Pledge collateral","group":"Doing the deal","definition":"This is when you offer specific assets as security for a loan. If you default, the lender can seize and sell these assets to recover their money.","what_it_means":"For an SBA 7(a) loan, you'll likely Pledge collateral from both the acquired business assets and your personal assets, especially real estate, to cover any collateral shortfall. The lender will file a UCC lien on business assets and a mortgage on real estate.","url":"https://dealroom.so/glossary/pledge-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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"}],"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":"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 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"}]},"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 collateral","url":"https://dealroom.so/glossary/pledge-collateral","source_type":"DealRoom Data"}}