Glossary · Doing the deal
In short
A standard requiring sensible, prudent actions in line with industry practices, especially when selling collateral. Lenders must follow this during liquidation.
When an SBA loan defaults and the lender liquidates collateral, they are required to do so in a "commercially reasonable method." This means they can't just dump assets; they must try to get the best possible price under the circumstances. As a buyer, this concept is important to understand what happens if a loan goes bad, ensuring the lender acts responsibly.
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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