SBA 7(a) Q&A
Short answer
Yes, personal assets such as marketable securities (e.g., stocks, bonds, mutual funds) can be used as additional collateral, especially when business assets are insufficient to fully secure the loan.
When there is a collateral shortfall from business assets, lenders must secure the loan with other available assets, including personal assets of the guarantors. Marketable securities, being liquid, are often preferred.
If a $1,000,000 acquisition loan is only 70% covered by business assets, a lender might require the borrower to pledge $150,000 from a personal investment account holding publicly traded stocks as additional collateral.
Insider move
Lenders require account statements and often a collateral assignment agreement for marketable securities. They may apply a "haircut" to the value (e.g., lend against 70% of market value) to account for market fluctuations.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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