{"ok":true,"canonical_url":"https://dealroom.so/glossary/liquidation-timeline","api_url":"https://dealroom.so/api/public/glossary/liquidation-timeline","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-timeline","term":"Liquidation Timeline","group":"Doing the deal","definition":"The estimated time it would take to sell off a business's assets and settle debts if it defaults. Lenders use this to assess risk and potential recovery.","what_it_means":"Lenders assess a liquidation timeline as part of their risk analysis. A shorter, clearer timeline for selling assets means quicker recovery in a default scenario. This doesn't directly affect your loan terms but reflects the lender's view on the marketability of the business's assets, which can influence their comfort with the deal.","url":"https://dealroom.so/glossary/liquidation-timeline","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":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"collection","term":"Collection","url":"https://dealroom.so/glossary/collection"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"How does the underwriting timeline for business life insurance impact loan closing schedules?","url":"https://dealroom.so/sba-7a/questions/how-does-the-underwriting-timeline-for-business-life-insurance-impact-loan-closing-schedul"},{"question":"What is the underwriting timeline for business life insurance relative to loan closing?","url":"https://dealroom.so/sba-7a/questions/what-is-the-underwriting-timeline-for-business-life-insurance-relative-to-loan-closing"},{"question":"What is a realistic timeline for SBA 7(a) loan application to closing?","url":"https://dealroom.so/sba-7a/questions/what-is-a-realistic-timeline-for-sba-7-a-loan-application-to-closing"},{"question":"What are the common checkpoints and milestones in the SBA 7(a) loan approval timeline?","url":"https://dealroom.so/sba-7a/questions/what-are-the-common-checkpoints-and-milestones-in-the-sba-7-a-loan-approval-timeline"},{"question":"Can seasonal fluctuations in the acquired business affect the SBA 7(a) loan approval timeline?","url":"https://dealroom.so/sba-7a/questions/can-seasonal-fluctuations-in-the-acquired-business-affect-the-sba-7-a-loan-approval-timeli"},{"question":"What is the expected timeline for each major stage of the SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/what-is-the-expected-timeline-for-each-major-stage-of-the-sba-7-a-loan-application"}]},"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 Timeline","url":"https://dealroom.so/glossary/liquidation-timeline","source_type":"DealRoom Data"}}