{"ok":true,"canonical_url":"https://dealroom.so/glossary/release-collateral","api_url":"https://dealroom.so/api/public/glossary/release-collateral","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":"release-collateral","term":"Release Collateral","group":"Doing the deal","definition":"The act of removing a lien or security interest from an asset that was previously pledged as collateral. This typically happens when a loan is paid off or replacement collateral is provided.","what_it_means":"If the seller has existing business debt secured by a UCC Lien on business assets, the lender for that debt will need to Release Collateral at closing. Your SBA loan proceeds will pay off the old debt, and the seller's lender will file a UCC-3 termination statement, clearing the way for your new SBA loan's First Lien.","url":"https://dealroom.so/glossary/release-collateral","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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"replacement-collateral","term":"Replacement Collateral","url":"https://dealroom.so/glossary/replacement-collateral"}],"related_questions":[{"question":"Can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-the-rem"},{"question":"When can a lender release collateral on a 7(a) loan without obtaining prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-release-collateral-on-a-7-a-loan-without-obtaining-prior-sba-approval"},{"question":"Can a lender release a personal guarantor without SBA approval if collateral fully covers the loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-release-a-personal-guarantor-without-sba-approval-if-collateral-fully-covers-"},{"question":"When can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/when-can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-th"},{"question":"What are the specific requirements for a lender to release collateral on a 7(a) loan during its term?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-release-collateral-on-a-7-a-loan-during"},{"question":"Which specific types of collateral can a lender release without prior SBA approval during the servicing phase of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/which-specific-types-of-collateral-can-a-lender-release-without-prior-sba-approval-during-"}]},"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 — Release Collateral","url":"https://dealroom.so/glossary/release-collateral","source_type":"DealRoom Data"}}