Glossary · People and paperwork
In short
These are legal claims on the business's assets, often from prior debts or unpaid taxes. Any existing liens must be cleared or subordinated for your SBA loan to proceed, as the SBA typically requires a first lien position.
A lien search (UCC and real estate) will reveal any existing claims against the business's assets. Your lender will require these liens to be paid off at closing or properly subordinated to the SBA's lien. Ensure the seller is responsible for clearing all existing liens as a condition of the sale, usually through the closing attorney.
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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