{"ok":true,"canonical_url":"https://www.capbench.com/glossary/collateral-policy","api_url":"https://www.capbench.com/api/public/glossary/collateral-policy","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"collateral-policy","term":"Collateral policy","group":"The loan itself","definition":"This is the set of rules and guidelines the SBA and lenders follow regarding what assets can secure a loan and how they are valued. It dictates what collateral is required for your 7(a) loan.","what_it_means":"The SBA requires all available business and personal assets to be pledged as collateral up to the loan amount. Lenders must conduct a collateral analysis and ensure their lien position is perfected. Understand that","url":"https://www.capbench.com/glossary/collateral-policy","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://www.capbench.com/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://www.capbench.com/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://www.capbench.com/glossary/collateral"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://www.capbench.com/glossary/collateral-analysis"},{"slug":"lien","term":"Lien","url":"https://www.capbench.com/glossary/lien"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://www.capbench.com/glossary/personal-guarantee"}],"related_questions":[{"question":"What is the specific SBA policy document that addresses collateral life insurance requirements?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-specific-sba-policy-document-that-addresses-collateral-life-insurance-requirem"},{"question":"What is the SBA's policy on collateral requirements if business assets are insufficient?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-sba-s-policy-on-collateral-requirements-if-business-assets-are-insufficient"},{"question":"How is a life insurance policy assigned as collateral to a lender for a business loan?","url":"https://www.capbench.com/sba-7a/questions/how-is-a-life-insurance-policy-assigned-as-collateral-to-a-lender-for-a-business-loan"},{"question":"Can a term life insurance policy be used for the collateral assignment requirement on an SBA 7(a) loan?","url":"https://www.capbench.com/for-lenders/questions/can-a-term-life-insurance-policy-be-used-for-the-collateral-assignment-requirement-on-an-s"},{"question":"Are there specific requirements for the type of life insurance policy needed for a collateral assignment on a key principal?","url":"https://www.capbench.com/sba-7a/questions/are-there-specific-requirements-for-the-type-of-life-insurance-policy-needed-for-a-collate"},{"question":"What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?","url":"https://www.capbench.com/for-lenders/questions/what-are-the-specific-requirements-for-naming-the-lender-as-the-loss-payee-on-a-life-insur"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Collateral policy","url":"https://www.capbench.com/glossary/collateral-policy","source_type":"CapBench Data"}}