Glossary · The loan itself
In short
A lien is a legal right held by a lender over assets until a debt is repaid. It gives the lender the right to seize the asset if you default on the loan.
For an SBA 7(a) loan, the lender will place a lien on the business assets being purchased, and often on your personal assets, as collateral. This ensures the lender can recover funds if the business fails. Understand what assets are encumbered.
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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