For SBA lenders
Short answer
To perfect a lien on intellectual property (IP), the lender generally files a UCC-1 financing statement with the relevant state Secretary of State. Additionally, for certain federal IP (like patents and registered trademarks), a separate filing with the U.S. Patent and Trademark Office (USPTO) is crucial to ensure proper perfection and priority.
While a UCC-1 filing typically perfects liens on most business assets, federal law dictates that for certain types of IP (patents, registered trademarks, registered copyrights), perfection against third parties requires a filing with the USPTO or U.S. Copyright Office. Failure to file at the federal level for these specific IP types may result in an unperfected lien, leaving the lender vulnerable in a default scenario.
A software development company secures a $1,500,000 7(a) loan, using its proprietary software's patent and registered trademarks as primary collateral. The lender files a UCC-1 statement in the state where the borrower is organized. Additionally, to ensure proper perfection, the lender also files security agreements with the USPTO for the patent and registered trademarks.
Insider move
Lenders are concerned about the enforceability and priority of their lien on valuable intellectual property. Improper perfection could lead to the loss of a secured position, significantly impacting recovery in a liquidation scenario and potentially resulting in a guaranty repair.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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