Glossary · The loan itself
In short
When the total value of assets pledged as collateral for a loan significantly exceeds the loan amount. This reduces lender risk but ties up more of the borrower's assets.
For an SBA 7(a) loan, lenders must take all available business assets as collateral, sometimes including personal assets, even if the loan is fully secured. This means you might pledge more than the loan amount. Focus on the cash flow and business value, not just collateral, as the primary repayment source.
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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