Glossary · Doing the deal
In short
This describes a legal claim on an asset that has the highest priority for repayment if the borrower defaults. For an SBA 7(a) loan, the lender always requires a senior lien position on the business assets.
Your SBA lender will file UCC liens to secure a first lien position on all business assets, including inventory, equipment, and accounts receivable. This ensures their claim is satisfied before any other creditors. Understand what assets are being pledged and that the lender will protect this 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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