Glossary · Doing the deal
Public sale
In short
A sale of assets or a business conducted openly, often through an auction, to the highest bidder. This is typically done to recover funds from a defaulted loan.
What it means in a deal
If an SBA loan defaults and the lender needs to liquidate collateral, they might conduct a public sale (like a public auction) to maximize recovery. As a buyer, you won't typically initiate a public sale, but understanding the concept helps if you acquire assets from a distressed situation.
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 Public sale
- What if the business for sale uses proprietary software or a unique technology?
- How does a lender verify equity injection from the sale of a cryptocurrency portfolio?
- Can a seller-financed portion of the sale be considered part of my equity injection?
- What documentation is required to verify equity injection funds sourced from a personal stock sale?
- Can I use proceeds from the sale of personal crypto assets for my equity injection?
- What if the seller withdraws from the sale agreement during the SBA loan underwriting process?
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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