{"ok":true,"canonical_url":"https://dealroom.so/glossary/undisclosed-lien","api_url":"https://dealroom.so/api/public/glossary/undisclosed-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":"undisclosed-lien","term":"Undisclosed Lien","group":"Doing the deal","definition":"An undisclosed lien is a legal claim against an asset that isn't openly declared by the seller. This can be a major problem for buyers, as it means someone else has a right to the assets you're trying to buy.","what_it_means":"Discovering an undisclosed lien after closing can put your acquired assets at risk and jeopardize your SBA 7(a) loan's collateral. Your lender will conduct a UCC search and lien search to identify these. Always insist on a clear title to all assets, and use an escrow to protect against post-closing discoveries.","url":"https://dealroom.so/glossary/undisclosed-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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"lien-search","term":"Lien Search","url":"https://dealroom.so/glossary/lien-search"}],"related_questions":[{"question":"What if the business I want to acquire has undisclosed liabilities discovered during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-acquire-has-undisclosed-liabilities-discovered-during-due-d"},{"question":"Does finding significant undisclosed liabilities during due diligence kill an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/does-finding-significant-undisclosed-liabilities-during-due-diligence-kill-an-sba-7-a-acqu"},{"question":"How does a lender prevent a guaranty denial related to undisclosed affiliations identified post-closing?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-prevent-a-guaranty-denial-related-to-undisclosed-affiliations-identified"},{"question":"What specific actions must a lender take if they discover undisclosed environmental contamination post-closing?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-must-a-lender-take-if-they-discover-undisclosed-environmental-contam"},{"question":"What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-a-valid-first-lien-position-on-u"},{"question":"What are the implications for a lender if the SBA discovers an undisclosed affiliate post-closing on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-implications-for-a-lender-if-the-sba-discovers-an-undisclosed-affiliate-post-"}]},"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 — Undisclosed Lien","url":"https://dealroom.so/glossary/undisclosed-lien","source_type":"DealRoom Data"}}