For SBA lenders
Short answer
Lenders must perfect security interests on accounts receivable and inventory by filing a UCC-1 financing statement with the appropriate state filing office.
Under Article 9 of the Uniform Commercial Code (UCC), a security interest in accounts receivable and inventory (which are considered "personal property") is perfected by filing a UCC-1 financing statement. This filing provides public notice of the lender's lien and establishes its priority against other creditors, securing a blanket lien on these fluctuating assets.
A lender provides a 7(a) working capital loan to a distributor. The lender files a UCC-1 financing statement with the Secretary of State in the state where the borrower is organized, claiming a security interest in all of the distributor's accounts receivable and inventory.
Insider move
Lenders prioritize proper UCC filings to establish and maintain their lien priority on critical current assets like A/R and inventory. They monitor UCC searches to ensure no senior liens exist and that their blanket lien remains perfected.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Standard 7(a) Authorization File Library
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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