{"ok":true,"canonical_url":"https://dealroom.so/glossary/recovery","api_url":"https://dealroom.so/api/public/glossary/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":"recovery","term":"Recovery","group":"The loan itself","definition":"The amount of money a lender or the SBA collects from a borrower or collateral after a loan defaults. It's the process of getting back funds lost.","what_it_means":"If a loan defaults, the lender pursues recovery through liquidation of collateral and enforcement of personal guarantees. The SBA also seeks recovery on its guaranteed portion. As a buyer, understanding potential recovery actions reinforces the importance of strong cash flow and managing risks post-acquisition.","url":"https://dealroom.so/glossary/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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"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"}]},"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 — Recovery","url":"https://dealroom.so/glossary/recovery","source_type":"DealRoom Data"}}