Glossary · Doing the deal
Priority
In short
The order in which creditors get paid from a debtor's assets if the business defaults or liquidates. For buyers, understanding lien priority determines whose claims come first.
What it means in a deal
Your SBA lender will always require a "first lien" position on all business assets used as collateral. This means their claim gets paid before any other creditors if the business fails. Understanding lien priority is critical to ensure your lender's security interest is properly established and protected.
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 Priority
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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