{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-tax-lien","api_url":"https://dealroom.so/api/public/glossary/federal-tax-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":"federal-tax-lien","term":"Federal tax lien","group":"Doing the deal","definition":"This is a legal claim by the IRS against a business's assets due to unpaid federal taxes. It takes priority over most other debts and can block an acquisition.","what_it_means":"A federal tax lien indicates serious financial trouble and must be resolved before or at closing for an SBA loan. The lien typically needs to be paid in full from sale proceeds, or the IRS must agree to subordinate it, which is rare for a 7(a) loan. Discovering this late can kill a deal.","url":"https://dealroom.so/glossary/federal-tax-lien","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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"lien-position","term":"Lien position","url":"https://dealroom.so/glossary/lien-position"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"federal-tax-obligation","term":"Federal tax obligation","url":"https://dealroom.so/glossary/federal-tax-obligation"}],"related_questions":[{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"Can a past federal tax lien, now paid in full, impact my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-past-federal-tax-lien-now-paid-in-full-impact-my-eligibility-for-an-sba-7-a-loan"},{"question":"What impact does a principal's recent federal tax lien have on 7(a) loan eligibility, even if paid?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-principal-s-recent-federal-tax-lien-have-on-7-a-loan-eligibility-even-i"},{"question":"How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-a-borrower-s-prior-federal-debt-delinquency-or-default-e-g-tax-lien-impact-their-"},{"question":"How does the lender determine if a prior federal debt delinquency or default (e.g., student loan, tax lien) impacts 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-lender-determine-if-a-prior-federal-debt-delinquency-or-default-e-g-student-l"},{"question":"What steps must a lender take if a 7(a) loan becomes delinquent due to the borrower's federal tax liens?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-if-a-7-a-loan-becomes-delinquent-due-to-the-borrower-s-feder"}]},"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 — Federal tax lien","url":"https://dealroom.so/glossary/federal-tax-lien","source_type":"DealRoom Data"}}