Glossary · The loan itself
In short
This is a change to the assets pledged as security for your loan after the initial agreement. It occurs if the value or nature of the collateral changes, or if additional collateral is needed.
Lenders may require a collateral modification if the initial collateral analysis reveals a shortfall or if specific assets are later sold or replaced. This ensures the lender always has adequate security. You might need to pledge additional personal or business assets to meet the SBA's collateral requirements, even after closing, if the initial valuation was off.
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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