Glossary · Doing the deal
In short
An undisclosed lien is a legal claim against an asset that isn't openly declared by the seller. This can be a major problem for buyers, as it means someone else has a right to the assets you're trying to buy.
Discovering an undisclosed lien after closing can put your acquired assets at risk and jeopardize your SBA 7(a) loan's collateral. Your lender will conduct a UCC search and lien search to identify these. Always insist on a clear title to all assets, and use an escrow to protect against post-closing discoveries.
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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