{"ok":true,"canonical_url":"https://dealroom.so/glossary/unsecured","api_url":"https://dealroom.so/api/public/glossary/unsecured","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":"unsecured","term":"Unsecured","group":"The loan itself","definition":"This describes a loan or debt not backed by specific collateral. If you default, the lender cannot seize a particular asset to recover their money.","what_it_means":"While SBA 7(a) loans are generally secured by business assets, any portion of the loan not covered by collateral might be considered unsecured. Your personal guarantee covers any collateral shortfall. Understand what assets are specifically pledged.","url":"https://dealroom.so/glossary/unsecured","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":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"}],"related_questions":[{"question":"Can I use an unsecured personal loan from a bank to fund my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-unsecured-personal-loan-from-a-bank-to-fund-my-equity-injection"},{"question":"Can an unsecured personal loan from a friend be used as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-an-unsecured-personal-loan-from-a-friend-be-used-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"},{"question":"Can a buyer use an unsecured personal loan for their equity injection on an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-use-an-unsecured-personal-loan-for-their-equity-injection-on-an-sba-7-a-acquis"},{"question":"How should a lender verify an equity injection sourced from an unsecured personal loan from an unrelated third party?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-verify-an-equity-injection-sourced-from-an-unsecured-personal-loan-fro"},{"question":"Can I use borrowed funds from a personal unsecured loan for my equity injection if I commit to repaying it later?","url":"https://dealroom.so/sba-7a/questions/can-i-use-borrowed-funds-from-a-personal-unsecured-loan-for-my-equity-injection-if-i-commi"}]},"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 — Unsecured","url":"https://dealroom.so/glossary/unsecured","source_type":"DealRoom Data"}}