Glossary · Reading the business
Orderly Liquidation Value
In short
This is the estimated price an asset would fetch if sold through an organized public sale over a reasonable marketing period. Lenders use it to assess the collateral value of a business's tangible assets.
What it means in a deal
For an SBA loan, lenders often require an appraisal to determine the Orderly Liquidation Value (OLV) of assets like equipment, inventory, and accounts receivable. This value is critical for collateral analysis, especially when determining if there's a collateral shortfall. A higher OLV means more secure collateral for the lender.
Official sources
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.
Related terms
Common questions about Orderly Liquidation Value
- What is the required timeframe for a lender to submit a liquidation plan?
- What if the primary business assets are specialized machinery with limited resale value?
- How does the SBA evaluate the value of contributed equipment for equity injection?
- How does a lender comply with SBA requirements for maximizing recovery on collateral during liquidation?
- What specific documentation must a lender include in a liquidation plan submitted to the SBA?
- What constitutes diligent liquidation efforts a lender must demonstrate before submitting a guaranty purchase request?
Defined by CapBench 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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