Glossary · Doing the deal
In short
The act of removing a lien or security interest from an asset that was previously pledged as collateral. This typically happens when a loan is paid off or replacement collateral is provided.
If the seller has existing business debt secured by a UCC Lien on business assets, the lender for that debt will need to Release Collateral at closing. Your SBA loan proceeds will pay off the old debt, and the seller's lender will file a UCC-3 termination statement, clearing the way for your new SBA loan's First Lien.
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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