Glossary · Doing the deal
In short
This is a loan secured by real estate that is subordinate to a first mortgage, meaning the first lender gets paid back first. Buyers care because it indicates another lender has a prior claim on the property, affecting your equity and risk.
In some SBA deals, if the existing real estate collateral isn't enough, or if the seller is carrying a note on the property, a second mortgage might be used. Understand its terms and how it affects your equity and risk. The SBA will typically want a first lien on business assets, potentially including real estate.
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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