Glossary · The loan itself
In short
The legal procedure lenders use to seize and sell business assets (Collateral) when a loan secured by a UCC lien goes into default. This process allows the lender to recover their losses without judicial intervention in many cases.
If your 7(a) loan defaults, your lender can initiate a UCC Foreclosure Process to take possession of and sell the business assets you pledged as Collateral. This is a common method for lenders to recover funds from defaulted business loans, distinct from real estate Foreclosure. Understand the implications of your UCC filing.
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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