Glossary · Doing the deal
In short
The process by which a lender sells assets pledged as collateral to recover funds when a borrower defaults on a loan. This is a last resort for the lender and signals a severe failure in loan repayment.
While you aim to avoid default, understand that if you fail to meet your loan obligations, the lender has the right to seize and sell the business's assets (and potentially your personal assets if you provided a personal guarantee). This process is governed by the loan agreement and UCC filings, impacting your credit and financial future.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day