Glossary · Doing the deal
In short
This is the process where a lender seizes and sells collateral to recoup losses when a borrower defaults on a loan. It's the last resort for the lender.
If an SBA 7(a) loan defaults, the lender will attempt to recover funds from the business's pledged collateral, like equipment or real estate. Any shortfall after recovery can trigger the personal guarantee. Understand what assets are pledged and their liquidation value.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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