Glossary · The loan itself
Security Asset(Collateral)
In short
An asset pledged by the borrower to a lender as collateral for a loan. If you default, the lender can seize and sell this asset to recover their funds.
What it means in a deal
For a 7(a) loan, the business assets you acquire are typically the primary security assets. If these aren't enough, the SBA requires all available equity in personal assets (like your home) to be pledged as additional collateral, up to the loan amount.
Official sources
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 Security Asset
- What happens if the business assets and my personal assets combined are insufficient collateral for a $600,000 SBA loan, requiring additional security?
- When is a blanket lien on all business assets *insufficient* as primary collateral for an SBA 7(a) loan, requiring additional security?
- Is a blanket lien on all business assets always required for a 7(a) loan, regardless of loan size or asset value?
- What is the difference between an asset and stock purchase in a buyout?
- How does the SBA require lenders to perfect security interests on accounts receivable and inventory?
- How does a lender perfect a security interest in intellectual property for a 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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