Glossary · People and paperwork
In short
These are legal claims on assets that take priority over all other claims. The SBA typically requires its loan to be in a first lien position, meaning any existing senior liens must be paid off or properly subordinated.
When an SBA loan is secured by collateral, the lender usually demands a 'first lien' position, making their claim superior to others. A lien search will reveal any senior liens, such as existing mortgages or UCC filings. These must be satisfied or legally subordinated at closing to allow the SBA lender to hold the primary claim on the collateral.
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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