{"ok":true,"canonical_url":"https://dealroom.so/glossary/prior-liens","api_url":"https://dealroom.so/api/public/glossary/prior-liens","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":"prior-liens","term":"Prior Liens","group":"Doing the deal","definition":"These are existing legal claims against a business's assets by other creditors, meaning those creditors have a superior right to the asset compared to your new SBA lender.","what_it_means":"Your SBA lender will require a first lien position on all business assets. Any prior liens from existing business debt must be paid off at closing or formally subordinated to your new SBA loan. A thorough lien search during your due diligence will identify these and ensure a clear title to assets.","url":"https://dealroom.so/glossary/prior-liens","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":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"lien-search","term":"Lien Search","url":"https://dealroom.so/glossary/lien-search"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to purchase a business with significant prior tax liens on its assets?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-significant-prior-tax-liens-on-its"},{"question":"If I have prior civil lawsuits or judgments, distinct from tax liens or bankruptcy, will that affect my SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-have-prior-civil-lawsuits-or-judgments-distinct-from-tax-liens-or-bankruptcy-will-tha"},{"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":"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 a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/for-lenders/questions/what-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What happens if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"}]},"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 — Prior Liens","url":"https://dealroom.so/glossary/prior-liens","source_type":"DealRoom Data"}}