{"ok":true,"canonical_url":"https://dealroom.so/glossary/senior-position","api_url":"https://dealroom.so/api/public/glossary/senior-position","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-position","term":"Senior Position","group":"The loan itself","definition":"This describes a lender's priority claim on a business's assets if the business defaults. As the SBA 7(a) lender typically holds a senior position, they get paid back before other creditors.","what_it_means":"Your SBA 7(a) loan will almost always be in a senior position, meaning the bank has the first right to seize and sell collateral to recover their funds if you default. This is critical for the lender's security. Any seller note or other debt from the deal will be subordinated to the SBA loan.","url":"https://dealroom.so/glossary/senior-position","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"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"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"}],"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 is the SBA's requirement for a buyer's post-closing working capital position?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-requirement-for-a-buyer-s-post-closing-working-capital-position"},{"question":"When can a second lien position be acceptable for specific assets on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-can-a-second-lien-position-be-acceptable-for-specific-assets-on-a-7-a-loan"},{"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"},{"question":"Does the SBA always require a first lien position on all business assets for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-always-require-a-first-lien-position-on-all-business-assets-for-an-acquisitio"},{"question":"How does the SBA view a second lien position on real estate collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-view-a-second-lien-position-on-real-estate-collateral-for-a-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 — Senior Position","url":"https://dealroom.so/glossary/senior-position","source_type":"DealRoom Data"}}