Glossary · The loan itself
In short
This means your SBA 7(a) loan has the highest claim on the business's assets and cash flow compared to other debts. It gets paid first in case of liquidation.
The SBA 7(a) loan is almost always "senior" debt, meaning it has a first lien position on all business assets. This priority is a key reason lenders feel secure enough to offer these loans. Any seller financing or other debt will typically be subordinated to your SBA loan, ensuring the SBA lender is paid first.
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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