{"ok":true,"canonical_url":"https://www.capbench.com/glossary/collateral-seizure","api_url":"https://www.capbench.com/api/public/glossary/collateral-seizure","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-18","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"collateral-seizure","term":"Collateral Seizure","group":"The loan itself","definition":"What happens when a lender takes possession of assets pledged for a loan due to default. For you, it means losing the business assets you put up if you can't pay.","what_it_means":"If your SBA 7(a) loan defaults, the lender will move to seize the collateral you pledged, which includes business assets and potentially personal assets if you signed a personal guarantee. This is the ultimate recourse for the lender and a key risk to understand.","url":"https://www.capbench.com/glossary/collateral-seizure","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":"default-procedure","term":"Default Procedure","url":"https://www.capbench.com/glossary/default-procedure"},{"slug":"collateral","term":"Collateral","url":"https://www.capbench.com/glossary/collateral"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://www.capbench.com/glossary/personal-guarantee"},{"slug":"loan-default","term":"Loan default","url":"https://www.capbench.com/glossary/loan-default"}],"related_questions":[{"question":"Can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://www.capbench.com/for-lenders/questions/can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-the-rem"},{"question":"When can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://www.capbench.com/for-lenders/questions/when-can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-th"},{"question":"Can cash in the business bank account count as collateral?","url":"https://www.capbench.com/sba-7a/questions/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"What happens if my business does not have enough collateral?","url":"https://www.capbench.com/sba-7a/questions/what-happens-if-my-business-does-not-have-enough-collateral"},{"question":"Can my business's accounts receivable be used as collateral?","url":"https://www.capbench.com/sba-7a/questions/can-my-business-s-accounts-receivable-be-used-as-collateral"},{"question":"Is collateral always required for an SBA 7(a) loan?","url":"https://www.capbench.com/sba-7a/questions/is-collateral-always-required-for-an-sba-7-a-loan"}]},"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 Seizure","url":"https://www.capbench.com/glossary/collateral-seizure","source_type":"CapBench Data"}}