Glossary · The loan itself
Unsecured Position
In short
This refers to a loan or a portion of a loan that is not backed by specific collateral. The lender relies on the borrower's creditworthiness and repayment capacity.
What it means in a deal
While SBA 7(a) loans require all available business and personal collateral, there might still be an 'unsecured position' if the collateral value doesn't cover the full loan amount. The SBA's guarantee helps lenders take on this additional risk, but you will still provide a personal guarantee.
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 Unsecured Position
- 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?
- What is the SBA's general requirement for lien position on business collateral?
- Can a buyer use an unsecured personal loan for their equity injection on an SBA 7(a) acquisition?
- What is the SBA's requirement for a buyer's post-closing working capital position?
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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