Glossary · The loan itself
Securitizing
In short
The process of pooling loans, like SBA loans, and converting them into marketable securities that can be sold to investors. This allows lenders to free up capital for more lending.
What it means in a deal
Many SBA lenders securitize the guaranteed portion of their loans on the secondary market. This doesn't directly affect your loan terms or repayment, but it's how lenders manage their balance sheets and continue to fund new SBA loans. You're effectively borrowing from a pool of investors, not just the originating bank.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Securitizing
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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