Glossary · People and paperwork
In short
This is a government claim against someone's property for unpaid taxes. An outstanding tax lien by a key principal or the selling business can block an SBA loan until it's resolved or properly subordinated.
The SBA requires that all federal tax liens against the borrower or key principals be either paid in full or formally subordinated to the SBA's lien. Your lender will perform a lien search and pull IRS transcripts (Form 4506-T) to uncover these. Budget time and funds to clear or resolve any discovered liens.
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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