{"ok":true,"canonical_url":"https://dealroom.so/glossary/enforceable-lien","api_url":"https://dealroom.so/api/public/glossary/enforceable-lien","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":"enforceable-lien","term":"Enforceable lien","group":"Doing the deal","definition":"This is a legal claim against an asset, ensuring the lender can seize it if you default on the loan. It's crucial because the SBA requires its lenders to secure their loans with a first lien position on business assets whenever possible.","what_it_means":"Lenders will conduct a lien search (UCC search) to ensure no prior claims exist against the business's assets. As a buyer, ensure all existing liens from the seller are properly released at closing so the lender can perfect their first lien position.","url":"https://dealroom.so/glossary/enforceable-lien","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"ucc-filing","term":"UCC filing","url":"https://dealroom.so/glossary/ucc-filing"},{"slug":"perfect-lien","term":"Perfect lien","url":"https://dealroom.so/glossary/perfect-lien"}],"related_questions":[{"question":"What are the SBA's requirements for obtaining an enforceable first lien position on a 7(a) loan's business assets?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-an-enforceable-first-lien-position-on-a-7-a-"},{"question":"What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-a-valid-first-lien-position-on-u"},{"question":"When must a lender take a lien on specific equipment for collateral, beyond a blanket lien?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-take-a-lien-on-specific-equipment-for-collateral-beyond-a-blanket-lien"},{"question":"What are the specific lien priority requirements for lenders on both business and personal collateral securing a 7(a) loan, particularly when junior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-lien-priority-requirements-for-lenders-on-both-business-and-personal"},{"question":"Is a separate lien required on each piece of equipment if a blanket lien is already in place?","url":"https://dealroom.so/sba-7a/questions/is-a-separate-lien-required-on-each-piece-of-equipment-if-a-blanket-lien-is-already-in-pla"},{"question":"Does the SBA take a lien on my personal home as collateral?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-take-a-lien-on-my-personal-home-as-collateral"}]},"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 — Enforceable lien","url":"https://dealroom.so/glossary/enforceable-lien","source_type":"DealRoom Data"}}