Glossary · Doing the deal
In short
This is the formal transfer of a lender's legal claim on collateral to another party, often the SBA. It ensures the SBA can step in if the lender fails to perform.
While your loan is with the lender, the SBA guarantees a portion of it. To secure their guarantee, the lender assigns their security interest in your collateral to the SBA. This is standard procedure, ensuring the SBA has a claim if the loan defaults and the lender needs to collect on the guarantee.
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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