Glossary · The loan itself
In short
This determines the order in which lenders get paid if a business defaults or is liquidated. SBA 7(a) loans typically secure a first lien position on business assets.
For an SBA 7(a) loan, the lender will almost always require a first lien on all business assets. This ensures they are at the front of the line to recover funds if the business becomes insolvent. Any existing liens or seller financing will need to be formally subordinated to the SBA lender's position to comply with program rules.
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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