Glossary · The loan itself
In short
When the total value of assets pledged as security for a loan equals or exceeds the loan amount. SBA loans often require all available business and personal assets to be pledged, even if they exceed the loan amount.
For SBA 7(a) loans, lenders are required to take all available business assets and, if needed, personal assets (like real estate) to "fully collateralize" the loan to the maximum extent possible. Don't expect to cherry-pick which assets are pledged; the lender will secure all available collateral up to the loan amount or maximum recovery.
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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