Glossary · People and paperwork
In short
This gives your lender the top priority claim on the business's assets if the loan defaults. It means they get paid before any other creditors from the sale of those assets.
A First Lien on Business Assets is a core requirement for SBA 7(a) loans, providing the primary security for the lender. This is established through UCC filings. You need to ensure the business's assets are unencumbered by other significant liens that would compromise your lender's 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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