Glossary · People and paperwork
In short
A legal document that transfers ownership of a specific asset to a lender as collateral for a loan, without changing physical possession. Buyers care because it secures the loan, limiting your financial flexibility with that asset.
In an SBA loan, certain assets, like life insurance policies or specific business equipment, might be pledged as collateral via this agreement. For instance, a life insurance assignment agreement ensures the lender is paid if the key person dies. Understand which assets are tied up and what the implications are for your post-acquisition operations.
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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