Glossary · The loan itself
In short
This refers to the priority the SBA lender must have on the business's assets as collateral. A first lien position means the SBA lender gets paid first from those assets if the business defaults.
For an SBA 7(a) loan, the lender almost always requires a first lien position on all business assets. This protects the loan. As a buyer, ensure all prior liens are cleared at closing, so your SBA lender can secure their required position.
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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