Glossary · Doing the deal
In short
The process a lender initiates to sell off a defaulted borrower's collateral to recover the outstanding loan amount. This occurs when a business fails and the lender seizes assets.
If your business defaults and the loan is accelerated, the lender will begin liquidation proceedings. This involves selling business assets pledged as collateral, and potentially personal assets if you provided a personal guarantee or secondary collateral. Understand the implications of liquidation on your personal finances if the business fails.
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