SBA 7(a) Q&A
Short answer
No, if a comprehensive blanket lien is properly filed on all business assets, including equipment, separate individual liens on each piece of equipment are generally not required.
A blanket lien, typically perfected through a Uniform Commercial Code (UCC) filing, grants the lender a security interest in all existing and future business personal property, which includes equipment. This single filing is usually sufficient to cover all equipment assets without needing individual liens.
A manufacturing business has numerous pieces of equipment. The SBA lender files a single UCC-1 financing statement covering 'all assets of the debtor.' This blanket lien covers all machinery and equipment without requiring separate filings for each individual item.
Insider move
Lenders ensure the blanket lien is properly filed and perfected according to state law to establish their first lien position. They verify that the UCC filing accurately describes the collateral and covers all intended business assets.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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