Glossary · Doing the deal
Perfection
In short
The legal process lenders use to protect their security interest in collateral, making their claim superior to others. This ensures the lender can seize assets if you default.
What it means in a deal
For an SBA loan, your lender perfects its lien on business assets, like accounts receivable and equipment, usually by filing a UCC-1 statement. For real estate, it's done by recording a mortgage. This step is critical for loan closing, giving the lender first lien position.
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
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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