Glossary · Doing the deal
In short
Costs the SBA allows a lender to incur and claim when liquidating collateral from a defaulted loan. These are typically reasonable and necessary expenses.
If an SBA loan defaults and collateral is liquidated, only specific, justifiable costs incurred by the lender are covered by the SBA guaranty. As a buyer, you need to understand the potential for these expenses to reduce net recovery, should a worst-case scenario occur.
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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