{"ok":true,"canonical_url":"https://dealroom.so/glossary/lien","api_url":"https://dealroom.so/api/public/glossary/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":"lien","term":"Lien","group":"The loan itself","definition":"A lien is a legal right held by a lender over assets until a debt is repaid. It gives the lender the right to seize the asset if you default on the loan.","what_it_means":"For an SBA 7(a) loan, the lender will place a lien on the business assets being purchased, and often on your personal assets, as collateral. This ensures the lender can recover funds if the business fails. Understand what assets are encumbered.","url":"https://dealroom.so/glossary/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"},{"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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"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":"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"},{"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 — Lien","url":"https://dealroom.so/glossary/lien","source_type":"DealRoom Data"}}