{"ok":true,"canonical_url":"https://dealroom.so/glossary/purchase-money-security-interest","api_url":"https://dealroom.so/api/public/glossary/purchase-money-security-interest","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":"purchase-money-security-interest","term":"Purchase money security interest","group":"Doing the deal","definition":"This is a specific type of security interest where the loan itself finances the acquisition of the collateral. It gives the lender a strong claim on the purchased assets.","what_it_means":"When you buy a business with an SBA loan, the lender takes a Purchase Money Security Interest in the assets you're acquiring. This means the loan directly enabled you to buy those specific assets, giving the lender first priority on them if you default. Ensure all assets are properly identified and documented in the loan agreement.","url":"https://dealroom.so/glossary/purchase-money-security-interest","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":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"collateral-perfection","term":"Collateral perfection","url":"https://dealroom.so/glossary/collateral-perfection"}],"related_questions":[{"question":"How does the SBA require lenders to perfect security interests on accounts receivable and inventory?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-require-lenders-to-perfect-security-interests-on-accounts-receivable-and-"},{"question":"How does a lender perfect a security interest in intellectual property for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-perfect-a-security-interest-in-intellectual-property-for-a-7-a-loan"},{"question":"If the seller requires a security interest, how does it affect the standby status of their note?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-requires-a-security-interest-how-does-it-affect-the-standby-status-of-their-"},{"question":"Are there specific requirements for a lender to obtain and maintain a security interest in life insurance policies used as collateral?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-requirements-for-a-lender-to-obtain-and-maintain-a-security-interest-in"},{"question":"How does a lender perfect its lien on a security interest in a business's intellectual property for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-perfect-its-lien-on-a-security-interest-in-a-business-s-intellectual-pro"},{"question":"Can an SBA 7(a) loan be used to purchase a business that has been losing money?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-has-been-losing-money"}]},"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 — Purchase money security interest","url":"https://dealroom.so/glossary/purchase-money-security-interest","source_type":"DealRoom Data"}}