Glossary · The loan itself
In short
A senior claim means a lender has the first right to an asset if the borrower defaults. Your SBA loan will typically aim for a senior claim on business assets to protect the lender.
In an SBA 7(a) loan, the lender wants a "first lien" position on collateral, making their claim senior to others. This means if the business fails, they get paid first from the sale of those assets. Understand what other creditors might have existing claims and how they will be subordinated or paid off.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day