{"ok":true,"canonical_url":"https://dealroom.so/glossary/seller-s-lien","api_url":"https://dealroom.so/api/public/glossary/seller-s-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":"seller-s-lien","term":"Seller's lien","group":"Doing the deal","definition":"This is a legal claim by the seller on the assets of the business you're buying, typically securing a seller note. It gives the seller the right to repossess assets if you default on that note.","what_it_means":"If you're using a seller note to finance part of the deal, the seller will likely take a lien on the business assets. The SBA requires this lien to be subordinated to the SBA lender's lien. Ensure the subordination agreement is properly drafted and recorded to protect your senior lender.","url":"https://dealroom.so/glossary/seller-s-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"}],"related":[{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"}],"related_questions":[{"question":"What is the SBA's general requirement for lien position on business collateral?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-general-requirement-for-lien-position-on-business-collateral"},{"question":"What if the seller wants to retain a subordinate lien on some business assets after the sale?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-wants-to-retain-a-subordinate-lien-on-some-business-assets-after-the-sa"},{"question":"Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-finance-the-entire-seller-s-equity-contribution-to-the-buyer-"},{"question":"What are the SBA's requirements for obtaining an enforceable first lien position on a 7(a) loan's business assets?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-an-enforceable-first-lien-position-on-a-7-a-"},{"question":"What are the lien subordination requirements for a seller note on full standby in a 7(a) acquisition?","url":"https://dealroom.so/for-lenders/questions/what-are-the-lien-subordination-requirements-for-a-seller-note-on-full-standby-in-a-7-a-ac"},{"question":"What are the SBA's requirements for obtaining a first lien position on all principal business assets?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-a-first-lien-position-on-all-principal-busin"}]},"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 — Seller's lien","url":"https://dealroom.so/glossary/seller-s-lien","source_type":"DealRoom Data"}}