Glossary · Doing the deal
In short
This is the home where you permanently live. For an SBA loan, if there's a collateral shortfall, your primary residence may be pledged as personal collateral, usually with a second mortgage.
Lenders will typically take a lien on your primary residence if there isn't enough business collateral to cover the loan, provided there is sufficient equity. This is a common requirement for 7(a) loans. Ensure you understand the implications of pledging your home, as it exposes a significant personal asset to business risk.
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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