{"ok":true,"canonical_url":"https://dealroom.so/glossary/repayment-priority","api_url":"https://dealroom.so/api/public/glossary/repayment-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":"repayment-priority","term":"Repayment Priority","group":"The loan itself","definition":"This determines the order in which lenders get paid if a business defaults or is liquidated. SBA 7(a) loans typically secure a first lien position on business assets.","what_it_means":"For an SBA 7(a) loan, the lender will almost always require a first lien on all business assets. This ensures they are at the front of the line to recover funds if the business becomes insolvent. Any existing liens or seller financing will need to be formally subordinated to the SBA lender's position to comply with program rules.","url":"https://dealroom.so/glossary/repayment-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":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"}],"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":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"},{"question":"Does the SBA set specific repayment schedules for 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-set-specific-repayment-schedules-for-7-a-loans"},{"question":"What are the typical repayment terms for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-typical-repayment-terms-for-an-sba-7-a-loan"},{"question":"What are the typical repayment periods for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-typical-repayment-periods-for-an-sba-7-a-loan"},{"question":"What is the typical repayment period for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-period-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 — Repayment Priority","url":"https://dealroom.so/glossary/repayment-priority","source_type":"DealRoom Data"}}