Glossary · Doing the deal
In short
The lender's public claim on the business's assets as collateral. Standard on every 7(a).
When you close an SBA 7(a) loan, the lender files a UCC-1 financing statement with the state, creating a public record of their security interest in the business's assets. This means if you default, the lender has the right to seize the collateral — equipment, inventory, accounts receivable, and any other business property. The UCC lien also signals to future creditors that the assets are encumbered. It releases automatically when the loan is paid off.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-14. 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 2026-06-14 · 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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