{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-waive-the-requirement-for-a-lien-on-readily-marketable-personal-assets-o","api_url":"https://dealroom.so/api/public/questions/when-can-a-lender-waive-the-requirement-for-a-lien-on-readily-marketable-personal-assets-o","question":"When can a lender waive the requirement for a lien on readily marketable personal assets of a guarantor?","topic":"Collateral & Lien Requirements","audience":"lender","bot_mode":"lender","short_answer":"A lender can waive the requirement for a lien on readily marketable personal assets when the business assets fully secure the loan, or when the cost of taking the lien exceeds the value of the collateral.","rule":"SBA policy generally requires a lien on readily marketable equity in personal real estate of principals when the business assets do not fully secure the loan. However, lenders are not required to take a lien if the loan is fully secured by business assets or if the cost of liquidating the personal asset would exceed the recoverable value. This decision must be documented and justified.","example":"For a $300,000 7(a) loan fully secured by business real estate valued at $450,000, a lender might waive taking a lien on a guarantor's personal investment portfolio. The lender would document that the business assets provide ample security, making the additional lien unnecessary.","what_lenders_check":"Lenders must balance the need for collateral with prudent cost-effectiveness. Justifying the waiver of a lien on personal assets is crucial to demonstrate adherence to prudent lending practices and avoid questions during a guaranty purchase review.","required_facts":["Business assets sufficient","Cost vs. value","Readily marketable assets","Personal real estate","Lender documentation"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"How does a lender determine if a blanket lien on all business assets is sufficient collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-blanket-lien-on-all-business-assets-is-sufficient-collate"},{"question":"What specific actions must a lender take to perfect a lien on intellectual property, such as patents or trademarks?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-must-a-lender-take-to-perfect-a-lien-on-intellectual-property-such-a"},{"question":"What specific documentation is required to properly collateralize life insurance on key principals for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-properly-collateralize-life-insurance-on-key-pr"},{"question":"When is a lender permitted to take a second lien position on specific assets for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-lender-permitted-to-take-a-second-lien-position-on-specific-assets-for-a-7-a-loa"},{"question":"Under what circumstances can a lender waive a required personal guaranty for a 7(a) loan principal?","url":"https://dealroom.so/for-lenders/questions/under-what-circumstances-can-a-lender-waive-a-required-personal-guaranty-for-a-7-a-loan-pr"},{"question":"What criteria justify a lender waiving a lien on readily marketable personal assets from a guarantor?","url":"https://dealroom.so/for-lenders/questions/what-criteria-justify-a-lender-waiving-a-lien-on-readily-marketable-personal-assets-from-a"}],"related_terms":[{"term":"Lien on Personal Assets","url":"https://dealroom.so/glossary/lien-on-personal-assets"},{"term":"Readily Marketable Personal Asset","url":"https://dealroom.so/glossary/readily-marketable-personal-asset"},{"term":"Readily marketable security","url":"https://dealroom.so/glossary/readily-marketable-security"},{"term":"Readily marketable asset","url":"https://dealroom.so/glossary/readily-marketable-asset"},{"term":"Lien on personal property","url":"https://dealroom.so/glossary/lien-on-personal-property"},{"term":"First Lien on Business Assets","url":"https://dealroom.so/glossary/first-lien-on-business-assets"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-waive-the-requirement-for-a-lien-on-readily-marketable-personal-assets-o","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}