{"ok":true,"canonical_url":"https://dealroom.so/glossary/junior-lien","api_url":"https://dealroom.so/api/public/glossary/junior-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":"junior-lien","term":"Junior lien","group":"The loan itself","definition":"A junior lien is a claim on collateral that is subordinate to another lien, meaning it gets paid only after the primary lienholder. As a buyer, you primarily care about the SBA loan's first lien position.","what_it_means":"In an SBA 7(a) loan, the SBA lender almost always requires a first lien position on all business assets and sometimes personal real estate. A junior lien means another creditor has a prior claim, which the SBA typically won't allow on primary collateral. Ensure no existing junior liens interfere with the SBA's required lien position.","url":"https://dealroom.so/glossary/junior-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"}],"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":"lien-position","term":"Lien position","url":"https://dealroom.so/glossary/lien-position"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"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":"Can a lender accept a junior lien position on non-real estate business assets as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-a-junior-lien-position-on-non-real-estate-business-assets-as-collatera"},{"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":"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 — Junior lien","url":"https://dealroom.so/glossary/junior-lien","source_type":"DealRoom Data"}}