Glossary · Doing the deal
In short
The two post-disbursement phases of an SBA loan: "servicing" involves managing the loan throughout its life, and "liquidation" is the process of recovering funds if the loan defaults.
After your loan closes, the lender "services" it, handling payments, modifications, and compliance. If a default occurs, the loan moves to "liquidation," where the lender attempts to recover assets. Understanding these phases clarifies the long-term obligations and risks of your SBA loan.
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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