Glossary · The loan itself
In short
This refers to the order in which lenders get paid from your business's assets if the loan defaults. A strong collateral position means the SBA lender is first in line.
The SBA 7(a) loan typically requires a first lien on all business assets. This gives the lender priority over other creditors if assets are liquidated, protecting the loan. Buyers should confirm the lender secures this position.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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