Glossary · The loan itself
In short
The amount of money a lender or the SBA collects from a borrower or collateral after a loan defaults. It's the process of getting back funds lost.
If a loan defaults, the lender pursues recovery through liquidation of collateral and enforcement of personal guarantees. The SBA also seeks recovery on its guaranteed portion. As a buyer, understanding potential recovery actions reinforces the importance of strong cash flow and managing risks post-acquisition.
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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