SBA loans do not require collateral up to certain amounts (loans under $25,000 have no collateral requirement, for example). For larger loans, the SBA says the lender must take collateral when available – which often means pledging your business assets like equipment, and possibly personal real estate if the loan is substantial. However, the SBA will not decline a loan solely due to lack of collateral as long as other factors are strong. So, if you don’t have a house to pledge, but your franchise projections and credit are good, you could still get the loan. Just expect to sign a personal guarantee regardless.