Glossary · The loan itself
In short
These are loans where real estate serves as collateral. As a buyer, you'll see these if the business owns its property, and the SBA 7(a) loan will likely be secured by that real estate.
When a business owns its property, the SBA 7(a) loan will often be secured by a first lien on that real estate. This type of collateral can strengthen your loan application, especially if the property's fair market value covers a significant portion of the loan amount. Be prepared for a property appraisal.
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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