Glossary · The loan itself
In short
Lien priority determines which creditor has the first claim to collateral if a business defaults, based on the order in which liens were perfected. Your SBA lender will require the highest priority, a "first lien," on your business assets.
Establishing lien priority is crucial for lenders to protect their investment. Generally, the first to perfect a lien has the highest priority. Your lender will perform a lien search to confirm there are no existing liens that would take precedence over their first lien position.
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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