{"ok":true,"canonical_url":"https://dealroom.so/glossary/net-recovery","api_url":"https://dealroom.so/api/public/glossary/net-recovery","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":"net-recovery","term":"Net recovery","group":"Doing the deal","definition":"The amount of money a lender ultimately recoups from a defaulted loan after deducting all costs associated with liquidation and collection.","what_it_means":"If an SBA loan defaults, the lender will try to recover as much as possible from collateral and guarantors. Net recovery is what they actually get after paying for things like legal fees, appraisal costs, and auction expenses. The SBA guaranty covers a percentage of this net loss to the lender, not the gross loan amount.","url":"https://dealroom.so/glossary/net-recovery","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","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"}],"related_questions":[{"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 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"},{"question":"What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"}]},"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 — Net recovery","url":"https://dealroom.so/glossary/net-recovery","source_type":"DealRoom Data"}}