Glossary · Doing the deal
In short
The legal process by which a lender repossesses and sells property (like real estate or business assets) when a borrower defaults on their loan.
If you default on your SBA loan, the lender can initiate foreclosure proceedings on any real estate or other assets pledged as collateral. This is the ultimate recourse for the lender to recover losses, so understand what assets you're putting on the line. Review your personal guarantee carefully.
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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