SBA loan basics
Short answer
It depends. If there isn't enough business collateral to secure the loan, and you have sufficient equity in your personal home, the lender may require a lien on it. This is typically a last resort.
The SBA requires lenders to take all available business assets as collateral first. If the loan is not fully secured by business assets, and the principals have sufficient equity in personal real estate (like a primary residence), the lender must take a lien on that personal real estate up to the amount needed to fully secure the loan or up to the available equity. However, for loans under $50,000, collateral may not be required.
A business owner requests a $400,000 loan. The business assets are valued at $250,000. The lender needs an additional $150,000 in collateral. If the owner has $200,000 in equity in their personal home, the lender would likely take a lien on the home to cover the shortfall.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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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