{"ok":true,"canonical_url":"https://dealroom.so/glossary/recoverability","api_url":"https://dealroom.so/api/public/glossary/recoverability","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":"recoverability","term":"Recoverability","group":"Reading the business","definition":"This refers to the likelihood that a lender can recoup its investment from a defaulted loan, usually by seizing and selling collateral. It's a key factor in underwriting.","what_it_means":"Lenders assess the recoverability of their loan by evaluating the liquidation value of pledged collateral and the strength of personal guarantees. For your 7(a) loan, the lender will perform a collateral analysis to determine what assets could be sold to cover losses, impacting loan terms and collateral requirements.","url":"https://dealroom.so/glossary/recoverability","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-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"liquidation-value","term":"Liquidation Value","url":"https://dealroom.so/glossary/liquidation-value"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral-recovery","term":"Collateral recovery","url":"https://dealroom.so/glossary/collateral-recovery"}],"related_questions":[]},"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 — Recoverability","url":"https://dealroom.so/glossary/recoverability","source_type":"DealRoom Data"}}