{"ok":true,"canonical_url":"https://dealroom.so/glossary/secondary-source-of-repayment","api_url":"https://dealroom.so/api/public/glossary/secondary-source-of-repayment","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":"secondary-source-of-repayment","term":"Secondary source of repayment","group":"The loan itself","definition":"Beyond the business's cash flow, this is another way the loan can be repaid, typically through collateral or a personal guarantee. It's the lender's backup plan.","what_it_means":"While the primary source of repayment for an SBA loan is the business's cash flow, lenders also evaluate secondary sources. This primarily includes the liquidation value of collateral and the borrower's personal guarantee. A strong secondary source can mitigate risk for the lender if the business's cash flow deteriorates.","url":"https://dealroom.so/glossary/secondary-source-of-repayment","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":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"What specific environmental due diligence is required for real estate collateral used as a secondary source of repayment?","url":"https://dealroom.so/for-lenders/questions/what-specific-environmental-due-diligence-is-required-for-real-estate-collateral-used-as-a"},{"question":"How does the SBA verify the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-the-source-of-my-equity-injection-funds"},{"question":"What documentation is required to prove the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-to-prove-the-source-of-my-equity-injection-funds"},{"question":"What documentation is needed to verify the source of my cash equity injection?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-needed-to-verify-the-source-of-my-cash-equity-injection"},{"question":"What documentation is required to verify the source of my cash equity injection?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-to-verify-the-source-of-my-cash-equity-injection"},{"question":"What specific documentation is required to verify the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-to-verify-the-source-of-my-equity-injection-funds"}]},"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 — Secondary source of repayment","url":"https://dealroom.so/glossary/secondary-source-of-repayment","source_type":"DealRoom Data"}}