Glossary · Doing the deal
In short
This is the formal process of removing a lender's security interest (lien) from a specific asset or assets that were pledged as collateral. It frees up the asset from the loan obligation.
When you sell an asset that was part of your SBA 7(a) loan collateral, you'll need a Collateral Release from your lender and the SBA. This is a critical step to ensure the asset can be transferred free and clear to a new owner. The proceeds from the sale often go towards reducing your Outstanding Balance.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day