Glossary · People and paperwork
Lienholder
In short
The party, usually a lender, that holds a legal claim (lien) on an asset as collateral for a debt. As a buyer, you need to know who has claims on business assets you're acquiring.
What it means in a deal
Before closing, your lender will perform a lien search to identify all existing lienholders on the business assets. Any existing liens must be satisfied or released by the seller at closing, ensuring you receive assets free and clear. Your SBA lender will become the primary lienholder on the business collateral.
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
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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