{"ok":true,"canonical_url":"https://dealroom.so/glossary/unencumbered-personal-real-estate","api_url":"https://dealroom.so/api/public/glossary/unencumbered-personal-real-estate","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":"unencumbered-personal-real-estate","term":"Unencumbered personal real estate","group":"Your money in the deal","definition":"This is real estate you own personally that is free of any mortgages or liens. The SBA requires you to pledge it as additional collateral if your business assets don't fully secure the loan.","what_it_means":"If the business assets don't cover the entire loan amount, the lender will look to your unencumbered personal real estate. You'll likely need to provide a second mortgage or deed of trust on your home or other properties. This can be a major sticking point for buyers.","url":"https://dealroom.so/glossary/unencumbered-personal-real-estate","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":"second-mortgage","term":"Second mortgage","url":"https://dealroom.so/glossary/second-mortgage"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"When is personal real estate typically required as additional collateral?","url":"https://dealroom.so/sba-7a/questions/when-is-personal-real-estate-typically-required-as-additional-collateral"},{"question":"Can funds from a personal line of credit secured by non-personal real estate be equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-line-of-credit-secured-by-non-personal-real-estate-be-equity-inj"},{"question":"Can I use proceeds from selling personal real estate as an equity injection after closing?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-selling-personal-real-estate-as-an-equity-injection-after-closing"},{"question":"When is personal real estate typically required as additional collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-personal-real-estate-typically-required-as-additional-collateral-for-a-7-a-loan"},{"question":"Is personal real estate always required as collateral for a larger SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/is-personal-real-estate-always-required-as-collateral-for-a-larger-sba-7-a-loan"},{"question":"Can personal real estate be required as collateral for a $200,000 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-personal-real-estate-be-required-as-collateral-for-a-200-000-7-a-loan"}]},"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 — Unencumbered personal real estate","url":"https://dealroom.so/glossary/unencumbered-personal-real-estate","source_type":"DealRoom Data"}}