Glossary · Doing the deal
In short
This is a legal claim by the IRS against a business's assets due to unpaid federal taxes. It takes priority over most other debts and can block an acquisition.
A federal tax lien indicates serious financial trouble and must be resolved before or at closing for an SBA loan. The lien typically needs to be paid in full from sale proceeds, or the IRS must agree to subordinate it, which is rare for a 7(a) loan. Discovering this late can kill a deal.
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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