Glossary · Doing the deal
Assignment of claims
In short
This is a legal transfer of the right to receive payment from a contract to another party, often a lender. It's how your lender secures their interest in the business's receivables.
What it means in a deal
In an SBA loan, your lender will require an assignment of claims for certain assets, like accounts receivable, to secure the loan. If the business has government contracts, this process is governed by the Federal Assignment of Claims Act and requires specific steps to make the assignment valid.
Related terms
Common questions about Assignment of claims
- How does a collateral assignment of life insurance protect a lender?
- What if the business I want to buy has pending litigation or unresolved legal claims?
- When does the SBA typically mandate collateral assignment of life insurance for a business loan?
- How does a lender ensure proper collateral assignment of life insurance on multiple key principals?
- When is collateral assignment of life insurance required for principals on an SBA 7(a) loan?
- How does a recent civil judgment (e.g., from a small claims court) affect my SBA 7(a) loan eligibility?
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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