{"ok":true,"canonical_url":"https://dealroom.so/glossary/collection-remedy","api_url":"https://dealroom.so/api/public/glossary/collection-remedy","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":"collection-remedy","term":"Collection remedy","group":"Doing the deal","definition":"This is the legal action a lender can take to recover money if a borrower defaults on a loan. It's how the bank gets its money back when things go wrong.","what_it_means":"Lenders include collection remedies in loan agreements to protect their investment. As a buyer, understand these terms in your loan documents; they outline what happens if you can't pay. This includes seizing collateral or pursuing personal guarantees.","url":"https://dealroom.so/glossary/collection-remedy","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":"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":"execution-on-asset","term":"Execution on asset","url":"https://dealroom.so/glossary/execution-on-asset"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What if my personal credit report shows a minor collection from several years ago?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-minor-collection-from-several-years-ago"},{"question":"What minimum collection efforts must a lender demonstrate before submitting a 7(a) liquidation plan?","url":"https://dealroom.so/for-lenders/questions/what-minimum-collection-efforts-must-a-lender-demonstrate-before-submitting-a-7-a-liquidat"},{"question":"Can I use personal assets like a valuable coin collection or art as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-personal-assets-like-a-valuable-coin-collection-or-art-as-part-of-my-equity-inje"},{"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"}]},"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 — Collection remedy","url":"https://dealroom.so/glossary/collection-remedy","source_type":"DealRoom Data"}}