Glossary · People and paperwork
In short
A lender or party that holds a security interest in specific assets (collateral) of a borrower. If the borrower defaults, the secured creditor has the right to seize those assets.
As an SBA 7(a) borrower, your lender will be a secured creditor, typically with a first lien position on business assets. You need to ensure any prior liens are released or subordinated before closing. This protects the lender's collateral interest.
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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