Glossary · The loan itself
In short
A claim on an asset that takes priority over all other claims in case of default or liquidation. The holder of a senior lien gets paid first from the sale of the collateral.
SBA 7(a) lenders typically require a first lien position (senior lien) on all business assets and any owner-occupied real estate collateral. This means the SBA lender has the primary claim if the business defaults. Understand what collateral secures your loan and the lien priority.
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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