Glossary · The loan itself
Lien
In short
A lien is a legal right held by a lender over assets until a debt is repaid. It gives the lender the right to seize the asset if you default on the loan.
What it means in a deal
For an SBA 7(a) loan, the lender will place a lien on the business assets being purchased, and often on your personal assets, as collateral. This ensures the lender can recover funds if the business fails. Understand what assets are encumbered.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Lien
- What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?
- When must a lender take a lien on specific equipment for collateral, beyond a blanket lien?
- What are the specific lien priority requirements for lenders on both business and personal collateral securing a 7(a) loan, particularly when junior liens exist?
- Is a separate lien required on each piece of equipment if a blanket lien is already in place?
- Does the SBA take a lien on my personal home as collateral?
- Is a blanket lien on all business assets a standard SBA requirement?
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.