Glossary · The loan itself
In short
Refers to the lender's right to take specific assets (collateral) if you default on your loan. This minimizes the lender's risk and is fundamental to SBA 7(a) loans.
Your SBA lender will always want a first secured position on all business assets. This means they get paid first from those assets in a liquidation scenario. They will file UCC liens and potentially mortgages to perfect their security interest.
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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