{"ok":true,"canonical_url":"https://dealroom.so/glossary/pledged-collateral","api_url":"https://dealroom.so/api/public/glossary/pledged-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":"pledged-collateral","term":"Pledged Collateral","group":"The loan itself","definition":"This refers to specific assets of the business, and often your personal assets, that you formally commit as security for the SBA loan. If you default, the lender can seize and sell this collateral to recover their funds.","what_it_means":"For an SBA 7(a) loan, the business assets (like equipment, inventory, accounts receivable) are typically pledged as primary collateral. If there's a collateral shortfall, personal assets like real estate may also be required. The lender will file a UCC lien on business assets and a mortgage on real estate to perfect their security interest.","url":"https://dealroom.so/glossary/pledged-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"},{"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","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"}],"related_questions":[{"question":"What types of assets are commonly pledged as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-assets-are-commonly-pledged-as-collateral-for-an-sba-7-a-loan"},{"question":"Can pledged marketable securities, like stocks, serve as additional collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-pledged-marketable-securities-like-stocks-serve-as-additional-collateral-for-an-sba-7-"},{"question":"What documentation is required to verify equity injection from a personal loan secured by non-pledged investment property?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-personal-loan-secured-by-"},{"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"},{"question":"What happens if the business assets are insufficient to fully collateralize my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-assets-are-insufficient-to-fully-collateralize-my-sba-7-a-loa"}]},"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 — Pledged Collateral","url":"https://dealroom.so/glossary/pledged-collateral","source_type":"DealRoom Data"}}