Glossary · People and paperwork
In short
The legal process of publicly recording a lender's claim on your assets, like equipment or real estate, as security for a loan. This establishes the lender's priority if you default.
For an SBA 7(a) loan, your lender will file UCC liens on business assets and potentially a mortgage on any real estate collateral. This ensures they have the first claim (first lien position) on these assets should the business default. A thorough lien search is performed during due diligence.
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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