Glossary · Doing the deal
In short
This is a legal claim by the seller on the assets of the business you're buying, typically securing a seller note. It gives the seller the right to repossess assets if you default on that note.
If you're using a seller note to finance part of the deal, the seller will likely take a lien on the business assets. The SBA requires this lien to be subordinated to the SBA lender's lien. Ensure the subordination agreement is properly drafted and recorded to protect your senior lender.
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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