Glossary · Doing the deal
Blanket Lien(UCC Lien)
In short
This is a legal claim by the lender on all the business's assets, rather than just specific ones. It gives the lender broad security over the business's property.
What it means in a deal
When you get an SBA loan, the lender will typically file a UCC-1 financing statement, creating a blanket lien on all business assets. This means if you default, they can seize any and all business property to satisfy the debt.
Related terms
Common questions about Blanket Lien
- When must a lender take a lien on specific equipment for collateral, beyond a blanket lien?
- Is a blanket lien on all business assets a standard SBA requirement?
- Is a separate lien required on each piece of equipment if a blanket lien is already in place?
- Beyond a blanket lien, what specific business assets typically provide significant collateral for an acquisition loan?
- How does the SBA define 'prudent lending standards' for collateral requirements beyond the minimum blanket lien?
- Does the SBA require a blanket lien on all business assets, including accounts receivable and inventory?
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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