Glossary · The loan itself
In short
Beyond the business's cash flow, this is another way the loan can be repaid, typically through collateral or a personal guarantee. It's the lender's backup plan.
While the primary source of repayment for an SBA loan is the business's cash flow, lenders also evaluate secondary sources. This primarily includes the liquidation value of collateral and the borrower's personal guarantee. A strong secondary source can mitigate risk for the lender if the business's cash flow deteriorates.
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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