{"ok":true,"canonical_url":"https://dealroom.so/glossary/liquidation-expense-summary","api_url":"https://dealroom.so/api/public/glossary/liquidation-expense-summary","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":"liquidation-expense-summary","term":"Liquidation Expense Summary","group":"The loan itself","definition":"This is an SBA form estimating the costs involved if the SBA has to liquidate the collateral for a defaulted loan. It helps determine the potential loss for the SBA.","what_it_means":"While you hope never to see this in action, it's part of the SBA's internal process for assessing risk and potential recovery in a default scenario. As a buyer, you won't directly fill this out, but it underpins the lender's collateral analysis and the SBA's guaranty decision.","url":"https://dealroom.so/glossary/liquidation-expense-summary","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":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"}],"related_questions":[{"question":"What is the required timeframe for a lender to submit a liquidation plan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-liquidation-plan"},{"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 specific documentation must a lender include in a liquidation plan submitted to the SBA?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-must-a-lender-include-in-a-liquidation-plan-submitted-to-the-s"},{"question":"What constitutes diligent liquidation efforts a lender must demonstrate before submitting a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-diligent-liquidation-efforts-a-lender-must-demonstrate-before-submitting-"},{"question":"What is the process for a lender to obtain SBA approval for extraordinary liquidation expenses?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-obtain-sba-approval-for-extraordinary-liquidation-expe"},{"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"}]},"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 — Liquidation Expense Summary","url":"https://dealroom.so/glossary/liquidation-expense-summary","source_type":"DealRoom Data"}}