Glossary · Doing the deal
Security Interest
In short
A legal right granted by a borrower to a lender over specific assets to secure a loan. If you default, the lender can seize and sell these assets to recover their money.
What it means in a deal
In an SBA loan, the lender takes a security interest in the business assets, and often your personal assets like real estate. This collateral protects the lender. You'll sign documents granting this interest, and the lender will perfect it via UCC filings or mortgages.
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 Security Interest
- 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?
- If the seller requires a security interest, how does it affect the standby status of their note?
- Are there specific requirements for a lender to obtain and maintain a security interest in life insurance policies used as collateral?
- How does a lender perfect its lien on a security interest in a business's intellectual property for a 7(a) loan?
- Do I have to put up my personal house as security 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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.