{"ok":true,"canonical_url":"https://dealroom.so/glossary/lien-priority","api_url":"https://dealroom.so/api/public/glossary/lien-priority","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-priority","term":"Lien priority","group":"The loan itself","definition":"Lien priority determines which creditor has the first claim to collateral if a business defaults, based on the order in which liens were perfected. Your SBA lender will require the highest priority, a \"first lien,\" on your business assets.","what_it_means":"Establishing lien priority is crucial for lenders to protect their investment. Generally, the first to perfect a lien has the highest priority. Your lender will perform a lien search to confirm there are no existing liens that would take precedence over their first lien position.","url":"https://dealroom.so/glossary/lien-priority","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":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"perfect-lien","term":"Perfect lien","url":"https://dealroom.so/glossary/perfect-lien"}],"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":"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"},{"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"},{"question":"What is the SBA's general requirement for lien position on business collateral?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-general-requirement-for-lien-position-on-business-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 — Lien priority","url":"https://dealroom.so/glossary/lien-priority","source_type":"DealRoom Data"}}