Glossary · Doing the deal
In short
The process of selling a borrower's collateral to recover funds after a loan default. This is the lender's final step to mitigate losses when a borrower cannot repay.
If your business loan defaults and payment plans fail, the lender will begin liquidation. They seize and sell pledged collateral, such as business assets or real estate, to recover outstanding debt. Understand your pledged collateral and its potential liquidation value.
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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