{"ok":true,"canonical_url":"https://dealroom.so/glossary/senior-claim","api_url":"https://dealroom.so/api/public/glossary/senior-claim","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":"senior-claim","term":"Senior claim","aka":"First lien position","group":"The loan itself","definition":"A senior claim means a lender has the first right to an asset if the borrower defaults. Your SBA loan will typically aim for a senior claim on business assets to protect the lender.","what_it_means":"In an SBA 7(a) loan, the lender wants a \"first lien\" position on collateral, making their claim senior to others. This means if the business fails, they get paid first from the sale of those assets. Understand what other creditors might have existing claims and how they will be subordinated or paid off.","url":"https://dealroom.so/glossary/senior-claim","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":"lien-priority","term":"Lien priority","url":"https://dealroom.so/glossary/lien-priority"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What if the business I want to buy has pending litigation or unresolved legal claims?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-buy-has-pending-litigation-or-unresolved-legal-claims"},{"question":"How does a recent civil judgment (e.g., from a small claims court) affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-civil-judgment-e-g-from-a-small-claims-court-affect-my-sba-7-a-loan-elig"}]},"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 — Senior claim","url":"https://dealroom.so/glossary/senior-claim","source_type":"DealRoom Data"}}