Glossary · The loan itself
Additional Security
In short
This refers to extra collateral lenders might require beyond the business assets to secure an SBA loan, often personal assets like real estate. It's how they reduce their risk if the business can't repay.
What it means in a deal
For an SBA 7(a) loan, if the business assets don't fully cover the loan amount, the lender will seek additional security from the buyer's personal assets. This can include a second mortgage on your home. Understand that the SBA requires a personal guarantee from all 20%+ owners, and lenders will collateralize it if possible.
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 Security
- When is a blanket lien on all business assets *insufficient* as primary collateral for an SBA 7(a) loan, requiring additional security?
- What happens if the business assets and my personal assets combined are insufficient collateral for a $600,000 SBA loan, requiring additional security?
- How does the SBA require lenders to perfect security interests on accounts receivable and inventory?
- How does a lender perfect a security interest in intellectual property for a 7(a) loan?
- If the seller requires a security interest, how does it affect the standby status of their note?
- Do I have to put up my personal house as security for an SBA 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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