Glossary · Your money in the deal
In short
This is property you own personally, like your home. Lenders often look to this as additional collateral if the business assets aren't enough to secure the SBA loan.
If the business assets don't fully cover the loan amount (a collateral gap), the SBA requires lenders to take available equity in personal real estate as additional collateral from all guarantors. This is typically a second mortgage on your primary residence or a first mortgage on investment properties. Be prepared for this requirement if the deal needs more collateral.
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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