{"ok":true,"canonical_url":"https://dealroom.so/glossary/outstanding-tax-lien","api_url":"https://dealroom.so/api/public/glossary/outstanding-tax-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":"outstanding-tax-lien","term":"Outstanding tax lien","group":"People and paperwork","definition":"This is a government claim against someone's property for unpaid taxes. An outstanding tax lien by a key principal or the selling business can block an SBA loan until it's resolved or properly subordinated.","what_it_means":"The SBA requires that all federal tax liens against the borrower or key principals be either paid in full or formally subordinated to the SBA's lien. Your lender will perform a lien search and pull IRS transcripts (Form 4506-T) to uncover these. Budget time and funds to clear or resolve any discovered liens.","url":"https://dealroom.so/glossary/outstanding-tax-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":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"lien-search","term":"Lien Search","url":"https://dealroom.so/glossary/lien-search"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"}],"related_questions":[{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"What if the business I am acquiring has significant outstanding tax liens or judgments?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-acquiring-has-significant-outstanding-tax-liens-or-judgments"},{"question":"Will outstanding state or local tax liens on the business affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/will-outstanding-state-or-local-tax-liens-on-the-business-affect-sba-7-a-loan-eligibility"},{"question":"What happens if the business being acquired has significant outstanding tax liabilities at closing?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-the-business-being-acquired-has-significant-outstanding-tax-liabilities-at"},{"question":"If the seller has outstanding federal tax liabilities that will not be paid at closing, will this prevent loan approval?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-has-outstanding-federal-tax-liabilities-that-will-not-be-paid-at-closing-wil"},{"question":"How does an open personal tax lien affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-open-personal-tax-lien-affect-my-eligibility-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 — Outstanding tax lien","url":"https://dealroom.so/glossary/outstanding-tax-lien","source_type":"DealRoom Data"}}