{"ok":true,"canonical_url":"https://dealroom.so/glossary/ucc-sale","api_url":"https://dealroom.so/api/public/glossary/ucc-sale","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-sale","term":"UCC Sale","group":"Doing the deal","definition":"The sale of collateral by a secured lender following a loan default, conducted under the rules of the Uniform Commercial Code. This is how lenders recover funds from business assets.","what_it_means":"If your business defaults on its SBA loan, the lender can conduct a UCC Sale of the business's assets (like inventory, equipment, accounts receivable) that are secured by a UCC Lien. The proceeds from this sale, after deducting Estimated Liquidation Cost, go towards repaying the defaulted loan.","url":"https://dealroom.so/glossary/ucc-sale","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":"uniform-commercial-code","term":"Uniform Commercial Code","url":"https://dealroom.so/glossary/uniform-commercial-code"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"estimated-liquidation-cost","term":"Estimated Liquidation Cost","url":"https://dealroom.so/glossary/estimated-liquidation-cost"}],"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":"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":"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":"What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-a-valid-first-lien-position-on-u"},{"question":"What if the business for sale uses proprietary software or a unique technology?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-for-sale-uses-proprietary-software-or-a-unique-technology"},{"question":"How does a lender verify equity injection from the sale of a cryptocurrency portfolio?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-the-sale-of-a-cryptocurrency-portfolio"}]},"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 Sale","url":"https://dealroom.so/glossary/ucc-sale","source_type":"DealRoom Data"}}