Glossary · The loan itself
In short
When assets from multiple loans or businesses are used as collateral for a single loan. The SBA generally restricts cross-collateralization to prevent assets from one business being used to secure another unrelated SBA loan.
In an SBA 7(a) acquisition, cross-collateralization typically means collateralizing the business acquisition loan with assets from another business owned by the buyer or an affiliate. The SBA generally prohibits this practice for separate, unaffiliated businesses, though it can apply within a single business or affiliated group for different loans. Your lender will assess the collateral pool carefully.
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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