{"ok":true,"canonical_url":"https://dealroom.so/glossary/tax-lien","api_url":"https://dealroom.so/api/public/glossary/tax-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":"tax-lien","term":"Tax lien","group":"Doing the deal","definition":"A legal claim placed on assets by a government agency (like the IRS) to secure payment of unpaid taxes. This lien must typically be resolved before an SBA loan can close.","what_it_means":"The SBA and lenders will not close a loan if there are unresolved tax liens against the business or key principals. During due diligence, obtain IRS transcripts (Form 4506-T) for the seller and the business to uncover any liens. These must be satisfied or subordinated to the SBA's lien.","url":"https://dealroom.so/glossary/tax-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"},{"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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"personal-judgment","term":"Personal judgment","url":"https://dealroom.so/glossary/personal-judgment"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"}],"related_questions":[{"question":"How does an open personal tax lien affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-open-personal-tax-lien-affect-my-eligibility-for-an-sba-7-a-loan"},{"question":"Will having a significant tax lien against the acquired business prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-having-a-significant-tax-lien-against-the-acquired-business-prevent-sba-7-a-loan-appr"},{"question":"Will a past tax lien or judgment on my credit report prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-tax-lien-or-judgment-on-my-credit-report-prevent-sba-7-a-loan-approval"},{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"Can a past federal tax lien, now paid in full, impact my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-past-federal-tax-lien-now-paid-in-full-impact-my-eligibility-for-an-sba-7-a-loan"},{"question":"How does having a prior tax lien that has been paid off affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-having-a-prior-tax-lien-that-has-been-paid-off-affect-my-sba-7-a-loan-eligibility"}]},"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 — Tax lien","url":"https://dealroom.so/glossary/tax-lien","source_type":"DealRoom Data"}}