Glossary · Doing the deal
In short
This refers to the legal requirement for a lender to sell collateral in a way that maximizes recovery while being fair. As a buyer, this protects you if your business fails and collateral must be sold.
If your business defaults and collateral is seized, the lender must sell it in a "commercially reasonable" manner, meaning they can't just dump assets for pennies. They need to make a good faith effort to get a fair price. This is a protection for you, the borrower, ensuring assets aren't wasted if liquidation occurs.
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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