Glossary · Doing the deal
In short
A legal right granted by a borrower to a lender over specific assets to secure a loan. If you default, the lender can seize and sell these assets to recover their money.
In an SBA loan, the lender takes a security interest in the business assets, and often your personal assets like real estate. This collateral protects the lender. You'll sign documents granting this interest, and the lender will perfect it via UCC filings or mortgages.
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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