{"ok":true,"canonical_url":"https://dealroom.so/glossary/security-instrument","api_url":"https://dealroom.so/api/public/glossary/security-instrument","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":"security-instrument","term":"Security instrument","group":"Doing the deal","definition":"This is a legal document, like a mortgage or a security agreement, that grants the lender a claim on specific assets (collateral) if you default on the loan. It's how the lender secures their investment.","what_it_means":"For an SBA loan, the security instrument typically includes a UCC filing for business assets and potentially a mortgage for real estate. These documents establish the lender's lien position on the collateral. Your lawyer will review these to ensure they accurately reflect the agreed-upon collateral and protect your interests.","url":"https://dealroom.so/glossary/security-instrument","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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-filing","term":"UCC filing","url":"https://dealroom.so/glossary/ucc-filing"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"}],"related_questions":[{"question":"How does the SBA require lenders to perfect security interests on accounts receivable and inventory?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-require-lenders-to-perfect-security-interests-on-accounts-receivable-and-"},{"question":"How does a lender perfect a security interest in intellectual property for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-perfect-a-security-interest-in-intellectual-property-for-a-7-a-loan"},{"question":"If the seller requires a security interest, how does it affect the standby status of their note?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-requires-a-security-interest-how-does-it-affect-the-standby-status-of-their-"},{"question":"Do I have to put up my personal house as security for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-have-to-put-up-my-personal-house-as-security-for-an-sba-7-a-loan"},{"question":"If the business property is leased, can the SBA loan finance a security deposit for the lease?","url":"https://dealroom.so/sba-7a/questions/if-the-business-property-is-leased-can-the-sba-loan-finance-a-security-deposit-for-the-lea"},{"question":"If the business property is leased, can an SBA 7(a) loan finance security deposits for the lease?","url":"https://dealroom.so/sba-loans/basics/if-the-business-property-is-leased-can-an-sba-7-a-loan-finance-security-deposits-for-the-l"}]},"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 — Security instrument","url":"https://dealroom.so/glossary/security-instrument","source_type":"DealRoom Data"}}