Glossary · The loan itself
Unsecured
In short
This describes a loan or debt not backed by specific collateral. If you default, the lender cannot seize a particular asset to recover their money.
What it means in a deal
While SBA 7(a) loans are generally secured by business assets, any portion of the loan not covered by collateral might be considered unsecured. Your personal guarantee covers any collateral shortfall. Understand what assets are specifically pledged.
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 Unsecured
- Can I use an unsecured personal loan from a bank to fund my equity injection?
- Can an unsecured personal loan from a friend be used as part of my equity injection?
- Can funds from an unsecured personal line of credit be considered part of my equity injection?
- Can a buyer use an unsecured personal loan for their equity injection on an SBA 7(a) acquisition?
- How should a lender verify an equity injection sourced from an unsecured personal loan from an unrelated third party?
- Can I use borrowed funds from a personal unsecured loan for my equity injection if I commit to repaying it later?
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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