Glossary · The loan itself
Additional collateral
In short
This is an asset, beyond the business itself, that you pledge to secure the loan. It's often required when the business assets alone don't fully cover the SBA loan amount.
What it means in a deal
The SBA mandates that lenders take all available equity in business and personal assets to secure a loan, especially when there's a collateral gap. This could include a second lien on your personal residence, investment properties, or marketable securities. Understand what assets you might need to pledge and its impact on your personal balance sheet.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Additional collateral
- When is personal real estate typically required as additional collateral?
- Can my personal residence be required as additional collateral for a larger SBA loan?
- When is personal real estate typically required as additional collateral for a 7(a) loan?
- What if my personal assets (like a boat or second home) could serve as additional collateral?
- Can pledged marketable securities, like stocks, serve as additional collateral for an SBA 7(a) loan?
- When is a lien on personal real estate required as additional collateral for a 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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