Glossary · Doing the deal
In short
This is when you offer specific assets as security for a loan. If you default, the lender can seize and sell these assets to recover their money.
For an SBA 7(a) loan, you'll likely Pledge collateral from both the acquired business assets and your personal assets, especially real estate, to cover any collateral shortfall. The lender will file a UCC lien on business assets and a mortgage on real estate.
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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