For SBA lenders
Short answer
Lenders must secure a first lien on titled vehicles by properly noting the lien on the Certificate of Title and filing Uniform Commercial Code (UCC) financing statements.
For titled vehicles (e.g., cars, trucks, heavy equipment), the lender must perfect its security interest by being named as the first lienholder on the vehicle's Certificate of Title, in accordance with state motor vehicle laws. Additionally, a UCC financing statement should be filed, typically as a precautionary measure, to cover the vehicles as business assets and ensure a blanket lien on all business assets.
A business acquires a new delivery truck as part of an expansion. The lender would ensure its name is listed as the primary lienholder on the truck's title with the state DMV and file a UCC-1 statement with the Secretary of State.
Insider move
Lenders must ensure their lien on titled vehicles is properly perfected to protect their collateral position. They meticulously follow state-specific title perfection rules and file UCCs to cover all business assets, including vehicles, to avoid gaps in collateral.
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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