For SBA lenders
Short answer
Lenders must obtain a perfected, first lien position on all available business assets to the maximum extent possible, using appropriate legal instruments like UCC-1 filings or real estate mortgages.
SOP 50 10 mandates that lenders take an enforceable security interest in all available assets of the business, including fixed assets, inventory, accounts receivable, and intangibles. This typically requires a first lien position, perfected according to state law, to protect the lender's interest and the SBA's guaranty.
A lender processes a $500,000 7(a) loan. They secure a first lien on all business assets via a UCC-1 filing for personal property and a recorded mortgage for any business-owned real estate, ensuring no prior liens exist that would impair their position.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Servicing and Liquidation Actions 7(a) Lender Matrix
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.
More on collateral & lien
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day