{"ok":true,"canonical_url":"https://dealroom.so/glossary/tangible-collateral","api_url":"https://dealroom.so/api/public/glossary/tangible-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":"tangible-collateral","term":"Tangible Collateral","group":"The loan itself","definition":"Assets with physical form that can be pledged to secure a loan. For an SBA loan, if the business assets aren't enough, the SBA requires personal assets as collateral.","what_it_means":"The SBA requires all available collateral to secure a 7(a) loan up to the loan amount. This means if the business assets don't fully cover the loan, your personal assets like real estate will be pledged. Understand what you're putting up; it's on the line if the business fails.","url":"https://dealroom.so/glossary/tangible-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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"}],"related_questions":[{"question":"What if the business I'm buying has limited tangible assets for collateral?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-limited-tangible-assets-for-collateral"},{"question":"What are the typical collateral requirements if the business has very few tangible assets?","url":"https://dealroom.so/sba-7a/questions/what-are-the-typical-collateral-requirements-if-the-business-has-very-few-tangible-assets"},{"question":"If the acquired business has no significant tangible assets, what types of *alternative* collateral might an SBA 7(a) lender require?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-no-significant-tangible-assets-what-types-of-alternative-coll"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"},{"question":"Can a 7(a) loan be secured by a lien on intellectual property alone if tangible assets are minimal?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-be-secured-by-a-lien-on-intellectual-property-alone-if-tangible-assets-are-"},{"question":"What is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-tangible-net-worth-for-a-business-to-be-considered-small-under-the-alt"}]},"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 — Tangible Collateral","url":"https://dealroom.so/glossary/tangible-collateral","source_type":"DealRoom Data"}}