Small businesses are crucial to the economy: in the Netherlands, they provide over the third of value added and the half of employment. Yet, small firms often face difficulties obtaining bank loans, according to a leading explanation because they do not have sufficient collateral value. The policy implications of this explanation are large as many public programs such as credit guarantee schemes are based on it. In this project I test this hypothesis using the rich microdata of Statistics Netherlands. The key idea is that for small businesses the personal wealth of the entrepreneur, such as her house, often serve as collateral either directly or indirectly. Therefore, positive (negative) shocks to entrepreneurial wealth should mitigate (exacerbate) financing difficulties if the collateral value channel is indeed important. The unique feature of the CBS microdata that allows me to estimate the effect of personal wealth on business outcomes is that entrepreneurs can be matched to their businesses. My contribution to the literature includes (i) measuring these effect at the individual-level rather than relying on aggregate data, (ii) studying the effects of wealth shocks both on becoming an entrepreneur (extensive margin) and on existing entrepreneurs (intensive margin), and (iii) considering both negative (2008-2012) and positive (2013-2018) shocks.