Glossary · Doing the deal
In short
This refers to personal assets, such as your home or investment accounts, that you pledge to secure the SBA loan. It provides the lender with additional security beyond the business assets.
If the business assets don't fully cover the loan amount (a collateral shortfall), the lender will require personal collateral from all guarantors. This most commonly involves a second mortgage on your primary residence. Understand that this puts your personal assets at risk if the business defaults.
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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