Glossary · Doing the deal
Public auction
In short
A type of public sale where assets are sold to the highest bidder in an open, competitive setting. This is often used for liquidating collateral from defaulted loans.
What it means in a deal
In the event of a loan default, lenders may use a public auction to sell business assets quickly to recover funds. As a buyer, you might encounter assets from a distressed business sold this way, but it's not typically how you'd acquire a going concern with an SBA loan.
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
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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