{"ok":true,"canonical_url":"https://dealroom.so/glossary/first-lien-on-business-assets","api_url":"https://dealroom.so/api/public/glossary/first-lien-on-business-assets","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-on-business-assets","term":"First Lien on Business Assets","group":"People and paperwork","definition":"This gives your lender the top priority claim on the business's assets if the loan defaults. It means they get paid before any other creditors from the sale of those assets.","what_it_means":"A First Lien on Business Assets is a core requirement for SBA 7(a) loans, providing the primary security for the lender. This is established through UCC filings. You need to ensure the business's assets are unencumbered by other significant liens that would compromise your lender's position.","url":"https://dealroom.so/glossary/first-lien-on-business-assets","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"},{"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"}],"related":[{"slug":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"}],"related_questions":[{"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":"Does the SBA take a lien on all business assets, even minor fixtures or intangible assets?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-take-a-lien-on-all-business-assets-even-minor-fixtures-or-intangible-assets"},{"question":"Is a blanket lien on all business assets a standard SBA requirement?","url":"https://dealroom.so/sba-7a/questions/is-a-blanket-lien-on-all-business-assets-a-standard-sba-requirement"}]},"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 on Business Assets","url":"https://dealroom.so/glossary/first-lien-on-business-assets","source_type":"DealRoom Data"}}