{"ok":true,"canonical_url":"https://dealroom.so/glossary/recoverable-value","api_url":"https://dealroom.so/api/public/glossary/recoverable-value","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":"recoverable-value","term":"Recoverable Value","group":"Reading the business","definition":"This is the estimated amount a lender could realistically get by selling the business's collateral if the loan defaults. It's a key part of how lenders assess risk.","what_it_means":"When underwriting your 7(a) loan, the lender will analyze the recoverable value of the business's assets to see if they adequately secure the loan. If the recoverable value is low compared to the loan amount, it's a collateral shortfall, and you might need additional personal collateral.","url":"https://dealroom.so/glossary/recoverable-value","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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"liquidation-value","term":"Liquidation Value","url":"https://dealroom.so/glossary/liquidation-value"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"}],"related_questions":[{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"When acquiring a business, can an SBA loan finance 100% of the goodwill value?","url":"https://dealroom.so/sba-7a/questions/when-acquiring-a-business-can-an-sba-loan-finance-100-of-the-goodwill-value"},{"question":"How does the SBA typically value goodwill in a business acquisition for lending purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-typically-value-goodwill-in-a-business-acquisition-for-lending-purposes"},{"question":"How does a lender determine the fair market value of business equipment used as collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-determine-the-fair-market-value-of-business-equipment-used-as-collateral"}]},"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 — Recoverable Value","url":"https://dealroom.so/glossary/recoverable-value","source_type":"DealRoom Data"}}