{"ok":true,"canonical_url":"https://dealroom.so/glossary/unsecured-personal-loan","api_url":"https://dealroom.so/api/public/glossary/unsecured-personal-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-personal-loan","term":"Unsecured Personal Loan","group":"Your money in the deal","definition":"This is a loan based on your creditworthiness, not backed by collateral. It can be a source for your equity injection, but SBA rules have specific requirements.","what_it_means":"If you use an unsecured personal loan for your equity injection, the SBA requires it to be \"unconditional\" – meaning no recourse to the business or its assets. It cannot be on \"standby\" if it's from a non-institutional lender. Be sure this type of financing complies with SBA equity injection rules.","url":"https://dealroom.so/glossary/unsecured-personal-loan","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"personal-assets","term":"Personal Assets","url":"https://dealroom.so/glossary/personal-assets"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"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 Personal Loan","url":"https://dealroom.so/glossary/unsecured-personal-loan","source_type":"DealRoom Data"}}