Glossary · The loan itself
In short
A loan is fully secured when the combined value of all pledged collateral is equal to or greater than the loan amount. This reduces the lender's risk.
The SBA requires all 7(a) loans to be fully secured to the maximum extent possible. Lenders will conduct a collateral analysis on business assets, personal assets (like real estate), and potentially life insurance. If the loan isn't fully secured by traditional collateral, the SBA will take a lien on available personal real estate.
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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