Glossary · Doing the deal
In short
The formal process of removing a lien from an asset once the underlying debt it secured has been fully paid. This clears the asset's title.
Before your 7(a) loan can close, all existing liens on the target business's assets must be satisfied. This ensures your lender gets a first lien position. The seller is responsible for clearing these, usually funded from the sale proceeds at closing.
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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