SBA 7(a) Q&A
Short answer
The SBA requires the lender to take a perfected first lien position on all available business assets provided as collateral for the loan.
For most SBA 7(a) loans, the lender must obtain a security interest in all available assets of the business, with a first lien position, meaning their claim takes priority over other creditors. This is typically perfected through a Uniform Commercial Code (UCC) filing.
For a business acquisition, the lender will file a UCC-1 statement with the relevant Secretary of State, securing a first lien on all equipment, inventory, accounts receivable, and general intangibles of the acquired business.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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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