Glossary · Doing the deal
Pledge
In short
A pledge is a formal commitment to offer assets as security for a loan. It grants the lender a security interest in specific property until the debt is repaid.
What it means in a deal
In an SBA 7(a) acquisition, you'll pledge various business assets, such as equipment, inventory, and accounts receivable, as collateral. You might also pledge personal assets. This means if you default, the lender can seize and sell these assets to recover their money. Understand exactly what you are pledging and its implications.
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 Pledge
- Do I always need to pledge collateral for an SBA 7(a) loan?
- If the business's assets are insufficient, will I need to pledge personal assets as collateral?
- Do I need to pledge personal collateral, like my home, for an SBA 7(a) loan?
- If the business assets are not enough, will the SBA require me to pledge my primary residence as collateral for a $700,000 loan?
- What types of assets are commonly pledged as collateral for an SBA 7(a) loan?
- Can pledged marketable securities, like stocks, serve as additional 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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