Glossary · People and paperwork
In short
This is a creditor whose claim on a business asset is subordinate to another creditor's claim. They get paid after the senior lienholder if the asset is sold.
In an SBA 7(a) acquisition, the SBA lender will almost always be the first lienholder on business assets. Any other creditors, like a seller with a standby seller note, would typically be a junior lienholder. Understand lien priority to know who gets paid first if things go south.
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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