Glossary · Doing the deal
Security deposit
In short
This is an amount of money held by a landlord or other party as assurance against future damage or non-payment. For a business, it's often for the lease.
What it means in a deal
In an acquisition, you might assume an existing lease's security deposit or pay a new one. It's an out-of-pocket expense that can be included in total project costs for 7(a) financing if it's a new or increased deposit required at closing.
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 deposit
- If the business property is leased, can the SBA loan finance a security deposit for the lease?
- Can I use an SBA 7(a) loan to finance a security deposit for a leased property as part of the acquisition?
- If the business property is leased, can an SBA 7(a) loan finance security deposits for the lease?
- Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?
- Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?
- How does the SBA require lenders to perfect security interests on accounts receivable and inventory?
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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