{"ok":true,"canonical_url":"https://www.capbench.com/glossary/cross-collateralization","api_url":"https://www.capbench.com/api/public/glossary/cross-collateralization","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":"cross-collateralization","term":"Cross-Collateralization","group":"The loan itself","definition":"When assets from multiple loans or businesses are used as collateral for a single loan. The SBA generally restricts cross-collateralization to prevent assets from one business being used to secure another unrelated SBA loan.","what_it_means":"In an SBA 7(a) acquisition, cross-collateralization typically means collateralizing the business acquisition loan with assets from another business owned by the buyer or an affiliate. The SBA generally prohibits this practice for separate, unaffiliated businesses, though it can apply within a single business or affiliated group for different loans. Your lender will assess the collateral pool carefully.","url":"https://www.capbench.com/glossary/cross-collateralization","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":"affiliation","term":"Affiliation","url":"https://www.capbench.com/glossary/affiliation"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://www.capbench.com/glossary/collateral-analysis"},{"slug":"ucc-lien","term":"UCC lien","url":"https://www.capbench.com/glossary/ucc-lien"}],"related_questions":[{"question":"What distinguishes a company redemption from a cross-purchase buyout for SBA?","url":"https://www.capbench.com/sba-7a/questions/what-distinguishes-a-company-redemption-from-a-cross-purchase-buyout-for-sba"},{"question":"What are the key distinctions between cross-purchase and entity-purchase buy-sell agreements?","url":"https://www.capbench.com/sba-7a/questions/what-are-the-key-distinctions-between-cross-purchase-and-entity-purchase-buy-sell-agreemen"},{"question":"What distinguishes a cross-purchase from an entity-purchase buy-sell agreement regarding life insurance?","url":"https://www.capbench.com/sba-7a/questions/what-distinguishes-a-cross-purchase-from-an-entity-purchase-buy-sell-agreement-regarding-l"}]},"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 — Cross-Collateralization","url":"https://www.capbench.com/glossary/cross-collateralization","source_type":"CapBench Data"}}