{"ok":true,"canonical_url":"https://dealroom.so/glossary/servicing-and-liquidation","api_url":"https://dealroom.so/api/public/glossary/servicing-and-liquidation","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":"servicing-and-liquidation","term":"Servicing and liquidation","group":"Doing the deal","definition":"The two post-disbursement phases of an SBA loan: \"servicing\" involves managing the loan throughout its life, and \"liquidation\" is the process of recovering funds if the loan defaults.","what_it_means":"After your loan closes, the lender \"services\" it, handling payments, modifications, and compliance. If a default occurs, the loan moves to \"liquidation,\" where the lender attempts to recover assets. Understanding these phases clarifies the long-term obligations and risks of your SBA loan.","url":"https://dealroom.so/glossary/servicing-and-liquidation","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":"collateral-liquidation","term":"Collateral liquidation","url":"https://dealroom.so/glossary/collateral-liquidation"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"servicing","term":"Servicing","url":"https://dealroom.so/glossary/servicing"}],"related_questions":[{"question":"Post-secondary market sale, what are the lender's continuing obligations regarding servicing, reporting, and liquidation of the unguaranteed portion of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/post-secondary-market-sale-what-are-the-lender-s-continuing-obligations-regarding-servicin"},{"question":"How is the ongoing servicing fee calculated and remitted to the SBA?","url":"https://dealroom.so/for-lenders/questions/how-is-the-ongoing-servicing-fee-calculated-and-remitted-to-the-sba"},{"question":"How are the ongoing servicing fees for an SBA 7(a) loan calculated and paid?","url":"https://dealroom.so/sba-7a/questions/how-are-the-ongoing-servicing-fees-for-an-sba-7-a-loan-calculated-and-paid"},{"question":"Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-any-other-lender-specific-fees-beyond-the-sba-guaranty-fee-and-ongoing-servicing"},{"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"},{"question":"Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-annual-servicing-fees-or-other-recurring-charges-beyond-the-sba-servicing-fee"}]},"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 — Servicing and liquidation","url":"https://dealroom.so/glossary/servicing-and-liquidation","source_type":"DealRoom Data"}}