For SBA lenders
Short answer
If business assets are in multiple states, a lender must ensure proper perfection of liens by filing UCC-1 statements in each relevant jurisdiction.
To perfect a security interest in tangible and intangible personal property, UCC-1 financing statements must be filed in the appropriate jurisdiction, typically the state where the debtor (borrower) is organized, or where the collateral is located. If assets are geographically dispersed, filings may be required in multiple states to ensure the lender's first lien position is protected across all jurisdictions where assets are held.
A trucking company borrower for a $1,500,000 7(a) loan is incorporated in Delaware, has its main office in New Jersey, and its trucks are primarily garaged in Pennsylvania. The lender would need to file a UCC-1 in Delaware (for entity organization), New Jersey (for principal location), and potentially Pennsylvania (for significant physical assets) to properly perfect its security interest.
Insider move
Failure to properly perfect liens in all relevant jurisdictions can result in the loss of a first lien position, severely impacting collateral recovery in default. Lenders must conduct thorough due diligence on asset locations and legal entity structures to ensure comprehensive UCC filings.
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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