Glossary · People and paperwork
In short
Also known as a UCC-1, this is a public notice filed by a lender to establish its legal claim (lien) on a borrower's assets used as collateral. It alerts other creditors that specific assets are already pledged.
Your SBA 7(a) lender will file a UCC-1 to perfect their lien on your business's assets, giving them priority if you default. As a buyer, you must perform a UCC search during due diligence to identify any existing liens on the seller's assets, ensuring they are cleared before closing to give your lender a first lien position.
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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