Glossary · Doing the deal
In short
These are existing legal claims against a business's assets by other creditors, meaning those creditors have a superior right to the asset compared to your new SBA lender.
Your SBA lender will require a first lien position on all business assets. Any prior liens from existing business debt must be paid off at closing or formally subordinated to your new SBA loan. A thorough lien search during your due diligence will identify these and ensure a clear title to assets.
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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