Glossary · The loan itself
In short
This refers to extra collateral lenders might require beyond the business assets to secure an SBA loan, often personal assets like real estate. It's how they reduce their risk if the business can't repay.
For an SBA 7(a) loan, if the business assets don't fully cover the loan amount, the lender will seek additional security from the buyer's personal assets. This can include a second mortgage on your home. Understand that the SBA requires a personal guarantee from all 20%+ owners, and lenders will collateralize it if possible.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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