Glossary · The loan itself
In short
Collateral is an asset pledged to a lender to secure a loan. If you default, the lender can seize and sell the collateral to recover their money.
For an SBA 7(a) loan, the business assets you acquire, like equipment, inventory, and accounts receivable, serve as primary collateral. The SBA also requires a personal guarantee from all owners, and if other assets are available, a lien may be placed on those too to cover any collateral shortfall.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day