{"ok":true,"canonical_url":"https://dealroom.so/glossary/assignment-of-claims-act","api_url":"https://dealroom.so/api/public/glossary/assignment-of-claims-act","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"assignment-of-claims-act","term":"Assignment of Claims Act","group":"People and paperwork","definition":"A federal law that allows businesses to assign payments from government contracts to a lender. This is crucial if a significant portion of the business's revenue comes from government contracts.","what_it_means":"If the business you're buying has contracts with the federal government, your lender will likely require an assignment of claims. This ensures the government pays the lender directly, or acknowledges the lender's right to future payments, reducing risk for the lender. It's a key part of securing collateral for government contractor loans.","url":"https://dealroom.so/glossary/assignment-of-claims-act","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"government-contracting-officer","term":"Government Contracting Officer","url":"https://dealroom.so/glossary/government-contracting-officer"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"Can my personal savings account act as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-my-personal-savings-account-act-as-collateral-for-an-sba-7-a-loan"},{"question":"How does a collateral assignment of life insurance protect a lender?","url":"https://dealroom.so/sba-7a/questions/how-does-a-collateral-assignment-of-life-insurance-protect-a-lender"},{"question":"What if the business I want to buy has pending litigation or unresolved legal claims?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-buy-has-pending-litigation-or-unresolved-legal-claims"},{"question":"When does the SBA typically mandate collateral assignment of life insurance for a business loan?","url":"https://dealroom.so/sba-7a/questions/when-does-the-sba-typically-mandate-collateral-assignment-of-life-insurance-for-a-business"},{"question":"How does a lender ensure proper collateral assignment of life insurance on multiple key principals?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-proper-collateral-assignment-of-life-insurance-on-multiple-key-pr"},{"question":"When is collateral assignment of life insurance required for principals on an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-collateral-assignment-of-life-insurance-required-for-principals-on-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Assignment of Claims Act","url":"https://dealroom.so/glossary/assignment-of-claims-act","source_type":"DealRoom Data"}}