Glossary · People and paperwork
Active Tax Lien
In short
A legal claim by the IRS or state/local government against a person or business's assets due to unpaid taxes. This can block an SBA loan closing.
What it means in a deal
An Active Tax Lien, whether personal or business, must be paid off or formally subordinated by the government agency before an SBA loan can close. Lenders will discover these during their lien searches. If a seller has one, make its resolution a condition of closing; if you have one, resolve it immediately.
Official sources
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.
Related terms
Common questions about Active Tax Lien
- What happens if a buyer for an SBA 7(a) loan has an active tax lien, even if on a payment plan?
- How does an open personal tax lien affect my eligibility for an SBA 7(a) loan?
- Will having a significant tax lien against the acquired business prevent SBA 7(a) loan approval?
- Will a past tax lien or judgment on my credit report prevent SBA 7(a) loan approval?
- What if a business applicant has outstanding federal tax liens or delinquencies?
- Can a past federal tax lien, now paid in full, impact my eligibility for an SBA 7(a) loan?
Defined by CapBench 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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