Glossary · People and paperwork
In short
A federal law that allows businesses to assign payments from government contracts to a lender. This is crucial if a significant portion of the business's revenue comes from government contracts.
If the business you're buying has contracts with the federal government, your lender will likely require an assignment of claims. This ensures the government pays the lender directly, or acknowledges the lender's right to future payments, reducing risk for the lender. It's a key part of securing collateral for government contractor loans.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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