Glossary · Doing the deal
In short
This is a specific type of security interest where the loan itself finances the acquisition of the collateral. It gives the lender a strong claim on the purchased assets.
When you buy a business with an SBA loan, the lender takes a Purchase Money Security Interest in the assets you're acquiring. This means the loan directly enabled you to buy those specific assets, giving the lender first priority on them if you default. Ensure all assets are properly identified and documented in the loan agreement.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day