{"ok":true,"canonical_url":"https://dealroom.so/glossary/securitizing","api_url":"https://dealroom.so/api/public/glossary/securitizing","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":"securitizing","term":"Securitizing","group":"The loan itself","definition":"The process of pooling loans, like SBA loans, and converting them into marketable securities that can be sold to investors. This allows lenders to free up capital for more lending.","what_it_means":"Many SBA lenders securitize the guaranteed portion of their loans on the secondary market. This doesn't directly affect your loan terms or repayment, but it's how lenders manage their balance sheets and continue to fund new SBA loans. You're effectively borrowing from a pool of investors, not just the originating bank.","url":"https://dealroom.so/glossary/securitizing","official_sources":[{"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":"secondary-market","term":"Secondary Market","url":"https://dealroom.so/glossary/secondary-market"},{"slug":"pooling","term":"Pooling","url":"https://dealroom.so/glossary/pooling"},{"slug":"certificate-of-guaranty","term":"Certificate of Guaranty","url":"https://dealroom.so/glossary/certificate-of-guaranty"},{"slug":"lender","term":"Lender","url":"https://dealroom.so/glossary/lender"}],"related_questions":[{"question":"What specific ongoing reporting obligations does a 7(a) lender have to the SBA after securitizing and selling the guaranteed portion of a loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-specific-ongoing-reporting-obligations-does-a-7-a-lender-have-to-the-sba-after-securi"}]},"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 — Securitizing","url":"https://dealroom.so/glossary/securitizing","source_type":"DealRoom Data"}}