Glossary · The loan itself
In short
An asset pledged by the borrower to a lender as collateral for a loan. If you default, the lender can seize and sell this asset to recover their funds.
For a 7(a) loan, the business assets you acquire are typically the primary security assets. If these aren't enough, the SBA requires all available equity in personal assets (like your home) to be pledged as additional collateral, up to the loan amount.
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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