Glossary · Doing the deal
Deed of Trust
In short
This is a legal document used in some states to secure a real estate loan, similar to a mortgage. It grants a trustee the power to sell the property if the borrower defaults.
What it means in a deal
If you're pledging real estate, like your primary residence or owner-occupied commercial real estate, as collateral for your SBA loan, a deed of trust will be recorded in the county where the property is located. This document creates a lien on the property, giving the lender recourse in case of default.
Related terms
Common questions about Deed of Trust
- For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can I use inherited money that is currently in a trust to fund my equity injection?
- Can a trust or an estate be an eligible borrower 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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