{"ok":true,"canonical_url":"https://dealroom.so/glossary/unsecured-loan","api_url":"https://dealroom.so/api/public/glossary/unsecured-loan","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-loan","term":"Unsecured loan","group":"The loan itself","definition":"This is a loan not backed by specific collateral. While rare for 7(a) acquisition loans, some smaller business debts might be unsecured.","what_it_means":"SBA 7(a) loans are typically secured by all available business assets and, if necessary, personal assets. You might encounter unsecured loans when reviewing the seller's existing debt. If you're consolidating or refinancing these, your new SBA loan will likely secure them. Understand which debts are secured versus unsecured as you assess liabilities.","url":"https://dealroom.so/glossary/unsecured-loan","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"},{"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":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"}],"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 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":"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":"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 loan","url":"https://dealroom.so/glossary/unsecured-loan","source_type":"DealRoom Data"}}