{"ok":true,"canonical_url":"https://dealroom.so/glossary/asset-seizure","api_url":"https://dealroom.so/api/public/glossary/asset-seizure","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-seizure","term":"Asset Seizure","aka":"Foreclosure","group":"Doing the deal","definition":"This is when a lender takes possession of assets pledged as collateral due to loan default. It's a last resort to recover their funds.","what_it_means":"If you default on your SBA loan, the lender has the right to seize and sell the business assets you pledged as collateral. This is why understanding collateral requirements and your personal guarantee is critical. Ensure your business can reliably generate the cash flow needed to avoid this scenario.","url":"https://dealroom.so/glossary/asset-seizure","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"}],"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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"foreclosure","term":"Foreclosure","url":"https://dealroom.so/glossary/foreclosure"}],"related_questions":[{"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"},{"question":"Can an SBA 7(a) loan be used to purchase a business where goodwill is the primary asset?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-where-goodwill-is-the-primary-asset"},{"question":"When is personal real estate required as additional collateral for a 7(a) loan with a business asset shortfall?","url":"https://dealroom.so/for-lenders/questions/when-is-personal-real-estate-required-as-additional-collateral-for-a-7-a-loan-with-a-busin"}]},"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 Seizure","url":"https://dealroom.so/glossary/asset-seizure","source_type":"DealRoom Data"}}