{"ok":true,"canonical_url":"https://dealroom.so/glossary/first-lien","api_url":"https://dealroom.so/api/public/glossary/first-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":"first-lien","term":"First lien","group":"The loan itself","definition":"A first lien gives a creditor the primary right to be paid from the sale of specific collateral if a borrower defaults. For an SBA 7(a) loan, your lender will almost always require a first lien on all business assets.","what_it_means":"Securing a first lien means the SBA lender has the highest priority claim over the business's assets. This is a standard requirement to protect the lender and the SBA guaranty. Ensure no existing liens on the business assets would impede your lender's ability to take a first position.","url":"https://dealroom.so/glossary/first-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":"lien-priority","term":"Lien priority","url":"https://dealroom.so/glossary/lien-priority"},{"slug":"perfect-lien","term":"Perfect lien","url":"https://dealroom.so/glossary/perfect-lien"}],"related_questions":[{"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":"What are the SBA's requirements for obtaining a first lien position on all principal business assets?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-a-first-lien-position-on-all-principal-busin"},{"question":"Does the SBA always require a first lien position on all business assets for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-always-require-a-first-lien-position-on-all-business-assets-for-an-acquisitio"},{"question":"Is a first lien position always required on all business assets taken as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-first-lien-position-always-required-on-all-business-assets-taken-as-collateral-for-an"},{"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 is the first step to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-first-step-to-apply-for-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 — First lien","url":"https://dealroom.so/glossary/first-lien","source_type":"DealRoom Data"}}