Glossary · Doing the deal
Mortgage
In short
A mortgage is a loan secured by real estate, meaning the property itself serves as collateral. Buyers care because if the business includes real estate, it will be pledged, impacting the deal's structure and your personal risk.
What it means in a deal
If the business sale includes real estate, a mortgage will be part of the financing package, often integrated into the SBA 7(a) loan. Understand the terms, especially if it's a separate loan or part of the larger 7(a) package, and how your personal assets might be involved. Ensure the real estate appraisal supports the loan amount.
Related terms
Common questions about Mortgage
- When is a leasehold mortgage acceptable as collateral for an SBA 7(a) loan?
- Can I use an SBA 7(a) loan to refinance my existing business mortgage?
- Can an SBA 7(a) loan be used to refinance an existing commercial mortgage?
- Can I use funds from a second mortgage on my personal home for my equity injection?
- What if I want to use a second mortgage on my personal residence for equity injection?
- How does a leasehold mortgage on the business property serve as collateral 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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