Glossary · Doing the deal
In short
Selling a business's assets in a controlled, non-distressed way to maximize recovery value, typically upon default. This is the lender's goal if things go south.
While you're focused on buying and growing a business, understanding orderly liquidation gives you insight into a lender's perspective on collateral value. In the event of a loan default, the SBA lender will attempt an orderly liquidation of collateral to recover funds before calling on the SBA guaranty. This typically yields higher recovery than a forced sale.
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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