Glossary · Doing the deal
In short
This is a legal document, like a mortgage or a security agreement, that grants the lender a claim on specific assets (collateral) if you default on the loan. It's how the lender secures their investment.
For an SBA loan, the security instrument typically includes a UCC filing for business assets and potentially a mortgage for real estate. These documents establish the lender's lien position on the collateral. Your lawyer will review these to ensure they accurately reflect the agreed-upon collateral and protect your interests.
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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