{"ok":true,"canonical_url":"https://dealroom.so/glossary/unsecured-position","api_url":"https://dealroom.so/api/public/glossary/unsecured-position","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-position","term":"Unsecured Position","group":"The loan itself","definition":"This refers to a loan or a portion of a loan that is not backed by specific collateral. The lender relies on the borrower's creditworthiness and repayment capacity.","what_it_means":"While SBA 7(a) loans require all available business and personal collateral, there might still be an 'unsecured position' if the collateral value doesn't cover the full loan amount. The SBA's guarantee helps lenders take on this additional risk, but you will still provide a personal guarantee.","url":"https://dealroom.so/glossary/unsecured-position","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"}],"related":[{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"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":"What is the SBA's general requirement for lien position on business collateral?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-general-requirement-for-lien-position-on-business-collateral"},{"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":"What is the SBA's requirement for a buyer's post-closing working capital position?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-requirement-for-a-buyer-s-post-closing-working-capital-position"}]},"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 Position","url":"https://dealroom.so/glossary/unsecured-position","source_type":"DealRoom Data"}}