Glossary · Doing the deal
In short
This is the process lenders undertake to recover money from you and collateral if your loan defaults. As a buyer, understanding this process helps you assess the risks and potential outcomes if your business struggles.
If your business defaults on its SBA loan, the lender will begin collection efforts, first against the business assets and then against any personal guarantees. This involves liquidating collateral and pursuing legal action to recover outstanding debt. Be clear on all collateral pledged and personal guarantee terms during closing.
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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