Glossary · The loan itself
Adequately Secured
In short
An SBA loan is "adequately secured" when the collateral, including business assets and any additional security, is sufficient to cover the loan amount. This is a key requirement for SBA approval.
What it means in a deal
The SBA requires all 7(a) loans to be adequately secured, meaning the lender must have enough collateral to protect against default. If primary business assets aren't enough, they'll look to additional security from the guarantors. If the loan is not adequately secured, the SBA will reduce its guaranty percentage or decline the loan.
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 Adequately Secured
- Is a loan secured by personal assets eligible for the down payment?
- Can a seller note on full standby still be secured by business assets?
- Can a seller note on full standby still be secured by specific business assets?
- Can I use a secured personal line of credit as part of my equity injection?
- Can a secured personal loan from a non-SBA bank count as my equity injection?
- Can funds from a personal line of credit secured by non-personal real estate be equity injection?
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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