Glossary · Doing the deal
In short
This is a legal claim against an asset, ensuring the lender can seize it if you default on the loan. It's crucial because the SBA requires its lenders to secure their loans with a first lien position on business assets whenever possible.
Lenders will conduct a lien search (UCC search) to ensure no prior claims exist against the business's assets. As a buyer, ensure all existing liens from the seller are properly released at closing so the lender can perfect their first lien 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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