Glossary · The loan itself
In short
This is a legal claim a lender places on the money owed to the business by its customers. It serves as collateral for your loan, giving the lender rights to these assets if you default.
For many SBA 7(a) loans, lenders will take a first lien position on all business assets, including accounts receivable. This means if the business defaults, the lender can collect directly from your customers' outstanding payments. It's a standard collateral requirement you should expect.
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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