{"ok":true,"canonical_url":"https://dealroom.so/glossary/primary-lienholder","api_url":"https://dealroom.so/api/public/glossary/primary-lienholder","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":"primary-lienholder","term":"Primary lienholder","aka":"First lien","group":"People and paperwork","definition":"The party holding the first claim on an asset if a debt isn't paid, giving them priority over other creditors. As a buyer, you need to know who has first claim on the business's assets, especially if you're using an SBA loan.","what_it_means":"In an SBA 7(a) loan, the SBA lender almost always requires a first lien position on the business's assets. This means they are the primary lienholder. You'll need to ensure all existing liens are cleared at closing so your lender can take this position.","url":"https://dealroom.so/glossary/primary-lienholder","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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"lien-position","term":"Lien position","url":"https://dealroom.so/glossary/lien-position"},{"slug":"ucc-filing","term":"UCC filing","url":"https://dealroom.so/glossary/ucc-filing"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"}],"related_questions":[{"question":"What is the primary purpose of SBA Form 1919 for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-sba-form-1919-for-eligibility"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp"},{"question":"What is the primary purpose of SBA Form 1919, 'Borrower Information Form'?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-1919-borrower-information-form"},{"question":"What is the primary goal of the SBA 7(a) loan program?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-goal-of-the-sba-7-a-loan-program"},{"question":"What are the primary fees charged on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-primary-fees-charged-on-an-sba-7-a-loan"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"}]},"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 — Primary lienholder","url":"https://dealroom.so/glossary/primary-lienholder","source_type":"DealRoom Data"}}