Glossary · Doing the deal
UCC Sale
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.
What it means in a deal
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.
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 UCC Sale
- Is a UCC-1 filing sufficient to perfect a lien on business assets?
- What if the business assets are located in multiple states, requiring multiple UCC filings?
- If a lender obtains a blanket lien, what are the key UCC filing requirements for interstate operations?
- What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?
- 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?
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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