For SBA lenders
Short answer
Yes, if the business assets fully collateralize the loan and meet SBA's required lien position, the lender may generally waive taking a lien on available personal real estate.
SBA policy generally requires lenders to take a first lien on all available business assets up to the loan amount. If the recoverable value of business assets (including accounts receivable, inventory, machinery, equipment, and real estate) is sufficient to fully secure the loan, the SBA does not require a lien on personal real estate solely for the purpose of additional collateralization.
For a $500,000 7(a) loan, the business has equipment with a liquidation value of $300,000, inventory of $100,000, and accounts receivable of $150,000. The total business collateral value is $550,000. The lender can decide not to take a lien on the owner's unencumbered personal residence, as the loan is fully secured by business assets.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on collateral & lien requirements
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