Glossary · Doing the deal
In short
This is when a lender takes possession of assets pledged as collateral due to loan default. It's a last resort to recover their funds.
If you default on your SBA loan, the lender has the right to seize and sell the business assets you pledged as collateral. This is why understanding collateral requirements and your personal guarantee is critical. Ensure your business can reliably generate the cash flow needed to avoid this scenario.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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