{"ok":true,"canonical_url":"https://dealroom.so/glossary/asset-recovery","api_url":"https://dealroom.so/api/public/glossary/asset-recovery","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"asset-recovery","term":"Asset Recovery","group":"Doing the deal","definition":"The process by which a lender reclaims and sells collateral to recoup losses when a loan defaults. As a buyer, understanding this process highlights the lender's security.","what_it_means":"If an SBA 7(a) loan defaults, the lender will initiate asset recovery, seizing and selling the business's collateral to minimize their losses. This is why the lender conducts thorough collateral analysis and requires perfection of their liens. As a buyer, you need to understand what assets are pledged and how critical they are to the business's operation, as their loss would be devastating.","url":"https://dealroom.so/glossary/asset-recovery","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"perfect-lien","term":"Perfect lien","url":"https://dealroom.so/glossary/perfect-lien"}],"related_questions":[{"question":"How does a lender comply with SBA requirements for maximizing recovery on collateral during liquidation?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-comply-with-sba-requirements-for-maximizing-recovery-on-collateral-durin"},{"question":"What minimum efforts must a lender demonstrate in collection and recovery before submitting a liquidation plan to the SBA?","url":"https://dealroom.so/for-lenders/questions/what-minimum-efforts-must-a-lender-demonstrate-in-collection-and-recovery-before-submittin"},{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"How does a recent significant personal asset purchase affect my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-significant-personal-asset-purchase-affect-my-sba-7-a-loan-application"},{"question":"What if the business I'm buying has intellectual property (e.g., patents, trademarks) as its main asset?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-intellectual-property-e-g-patents-trademarks-as-its-ma"},{"question":"How does an SBA 7(a) loan address the financing of intellectual property as a major business asset?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-address-the-financing-of-intellectual-property-as-a-major-busines"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Asset Recovery","url":"https://dealroom.so/glossary/asset-recovery","source_type":"DealRoom Data"}}