Glossary · Doing the deal
In short
Waiving a lien means a creditor gives up their legal claim on an asset. This is often necessary for the SBA lender to secure a first lien position on collateral, making the loan viable.
The SBA requires its lenders to hold a first lien position on all business assets. If a seller or another creditor has an existing lien, they must formally waive it before closing. Ensure all prior liens are addressed and released as part of the closing process.
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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