Glossary · Doing the deal
In short
The sale of collateral by a secured lender following a loan default, conducted under the rules of the Uniform Commercial Code. This is how lenders recover funds from business assets.
If your business defaults on its SBA loan, the lender can conduct a UCC Sale of the business's assets (like inventory, equipment, accounts receivable) that are secured by a UCC Lien. The proceeds from this sale, after deducting Estimated Liquidation Cost, go towards repaying the defaulted 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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