Glossary · The loan itself
In short
This means the value of the assets pledged as security for the loan equals or exceeds the total loan amount. It offers the lender maximum protection if the borrower defaults.
When a loan is fully collateralized, it reduces the lender's risk, making the loan more attractive. While 7(a) loans don't strictly require this, it strengthens your application. Ensure the appraisal accurately reflects asset values and understand what assets are included.
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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