{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateral-release","api_url":"https://dealroom.so/api/public/glossary/collateral-release","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":"collateral-release","term":"Collateral Release","group":"Doing the deal","definition":"This is the formal process of removing a lender's security interest (lien) from a specific asset or assets that were pledged as collateral. It frees up the asset from the loan obligation.","what_it_means":"When you sell an asset that was part of your SBA 7(a) loan collateral, you'll need a Collateral Release from your lender and the SBA. This is a critical step to ensure the asset can be transferred free and clear to a new owner. The proceeds from the sale often go towards reducing your Outstanding Balance.","url":"https://dealroom.so/glossary/collateral-release","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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-filing","term":"UCC filing","url":"https://dealroom.so/glossary/ucc-filing"},{"slug":"outstanding-balance","term":"Outstanding Balance","url":"https://dealroom.so/glossary/outstanding-balance"}],"related_questions":[{"question":"Can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-the-rem"},{"question":"When can a lender release collateral on a 7(a) loan without obtaining prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-release-collateral-on-a-7-a-loan-without-obtaining-prior-sba-approval"},{"question":"Can a lender release a personal guarantor without SBA approval if collateral fully covers the loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-release-a-personal-guarantor-without-sba-approval-if-collateral-fully-covers-"},{"question":"When can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/when-can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-th"},{"question":"What are the specific requirements for a lender to release collateral on a 7(a) loan during its term?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-release-collateral-on-a-7-a-loan-during"},{"question":"Which specific types of collateral can a lender release without prior SBA approval during the servicing phase of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/which-specific-types-of-collateral-can-a-lender-release-without-prior-sba-approval-during-"}]},"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 — Collateral Release","url":"https://dealroom.so/glossary/collateral-release","source_type":"DealRoom Data"}}