Glossary · The loan itself
In short
A first lien gives a creditor the primary right to be paid from the sale of specific collateral if a borrower defaults. For an SBA 7(a) loan, your lender will almost always require a first lien on all business assets.
Securing a first lien means the SBA lender has the highest priority claim over the business's assets. This is a standard requirement to protect the lender and the SBA guaranty. Ensure no existing liens on the business assets would impede your lender's ability to take a first position.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day