{"ok":true,"canonical_url":"https://dealroom.so/glossary/ucc-foreclosure-process","api_url":"https://dealroom.so/api/public/glossary/ucc-foreclosure-process","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":"ucc-foreclosure-process","term":"UCC Foreclosure Process","group":"The loan itself","definition":"The legal procedure lenders use to seize and sell business assets (Collateral) when a loan secured by a UCC lien goes into default. This process allows the lender to recover their losses without judicial intervention in many cases.","what_it_means":"If your 7(a) loan defaults, your lender can initiate a UCC Foreclosure Process to take possession of and sell the business assets you pledged as Collateral. This is a common method for lenders to recover funds from defaulted business loans, distinct from real estate Foreclosure. Understand the implications of your UCC filing.","url":"https://dealroom.so/glossary/ucc-foreclosure-process","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"foreclosure","term":"Foreclosure","url":"https://dealroom.so/glossary/foreclosure"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"Is a UCC-1 filing sufficient to perfect a lien on business assets?","url":"https://dealroom.so/for-lenders/questions/is-a-ucc-1-filing-sufficient-to-perfect-a-lien-on-business-assets"},{"question":"Does having a past personal foreclosure affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-having-a-past-personal-foreclosure-affect-my-eligibility-for-an-sba-7-a-loan"},{"question":"What if the business assets are located in multiple states, requiring multiple UCC filings?","url":"https://dealroom.so/for-lenders/questions/what-if-the-business-assets-are-located-in-multiple-states-requiring-multiple-ucc-filings"},{"question":"How does a recent personal foreclosure or short sale on my home affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-personal-foreclosure-or-short-sale-on-my-home-affect-sba-7-a-loan-approv"},{"question":"If a lender obtains a blanket lien, what are the key UCC filing requirements for interstate operations?","url":"https://dealroom.so/for-lenders/questions/if-a-lender-obtains-a-blanket-lien-what-are-the-key-ucc-filing-requirements-for-interstate"},{"question":"Does a foreclosure on an investment property (not my primary residence) affect my SBA 7(a) loan approval chances?","url":"https://dealroom.so/sba-7a/questions/does-a-foreclosure-on-an-investment-property-not-my-primary-residence-affect-my-sba-7-a-lo"}]},"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 — UCC Foreclosure Process","url":"https://dealroom.so/glossary/ucc-foreclosure-process","source_type":"DealRoom Data"}}