Glossary · People and paperwork
In short
This is a legal claim a lender places on your movable assets, such as equipment, inventory, or accounts receivable, as collateral for your loan. It gives them the right to seize these assets if you default.
For an SBA loan, the lender will almost always require a first lien on business assets. This is secured via a UCC filing. As a buyer, ensure existing liens are cleared or subordinated at closing to give your lender the required priority.
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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