{"ok":true,"canonical_url":"https://dealroom.so/glossary/disposition","api_url":"https://dealroom.so/api/public/glossary/disposition","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":"disposition","term":"Disposition","group":"Doing the deal","definition":"The sale or disposal of collateral assets, typically after a loan default, to recover funds for the lender. It's the final stage if a loan cannot be repaid.","what_it_means":"If a loan defaults, the lender will move to dispose of collateralized assets to recoup their losses. This involves selling equipment, real estate, or other pledged items. As a buyer, understand the liquidation value of the collateral to assess the lender's potential recovery if you were to default, and how that impacts your personal guarantee.","url":"https://dealroom.so/glossary/disposition","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":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"foreclosure","term":"Foreclosure","url":"https://dealroom.so/glossary/foreclosure"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"What specific documentation is required for a lender to prove 'commercially reasonable' disposition of collateral during 7(a) loan liquidation?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-to-prove-commercially-reasonable-disp"},{"question":"Can a lender accept a \"soft offer\" for collateral in liquidation, or is a formal appraisal always required for disposition?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-a-soft-offer-for-collateral-in-liquidation-or-is-a-formal-appraisal-al"},{"question":"When a lender is liquidating collateral for a 7(a) loan, what are the specific requirements for proving \"commercially reasonable\" disposition?","url":"https://dealroom.so/for-lenders/questions/when-a-lender-is-liquidating-collateral-for-a-7-a-loan-what-are-the-specific-requirements-"}]},"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 — Disposition","url":"https://dealroom.so/glossary/disposition","source_type":"DealRoom Data"}}