Glossary · The loan itself
In short
A junior lien is a claim on collateral that is subordinate to another lien, meaning it gets paid only after the primary lienholder. As a buyer, you primarily care about the SBA loan's first lien position.
In an SBA 7(a) loan, the SBA lender almost always requires a first lien position on all business assets and sometimes personal real estate. A junior lien means another creditor has a prior claim, which the SBA typically won't allow on primary collateral. Ensure no existing junior liens interfere with the SBA's required lien position.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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