{"ok":true,"canonical_url":"https://dealroom.so/glossary/release-of-collateral","api_url":"https://dealroom.so/api/public/glossary/release-of-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-of-collateral","term":"Release of collateral","group":"Doing the deal","definition":"This is the formal process by which a lender relinquishes its security interest in specific assets that were pledged as collateral for a loan. It's usually done after the loan is paid off.","what_it_means":"When you pay off a loan or refinance, the existing lender must formally release its collateral, typically by filing a UCC termination statement. Ensure this is done promptly at closing for any existing liens on the business assets you are acquiring, otherwise, you could inherit encumbered assets and face issues with your new lender.","url":"https://dealroom.so/glossary/release-of-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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"collateral-perfection","term":"Collateral perfection","url":"https://dealroom.so/glossary/collateral-perfection"}],"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 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":"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-"},{"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":"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"}]},"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 of collateral","url":"https://dealroom.so/glossary/release-of-collateral","source_type":"DealRoom Data"}}