Glossary · Doing the deal
Recorded Lien
In short
A legal claim filed publicly against an asset, like equipment or real estate, indicating someone else has a financial interest in it. Lenders record liens to secure their loans.
What it means in a deal
Your SBA lender will record a lien against the business's assets (inventory, equipment, accounts receivable, general intangibles) to secure the loan. This gives them a legal claim if you default. A UCC filing is the most common way to perfect and record a lien on business assets. You'll want to ensure no other unperfected liens exist that could compromise the lender's priority.
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 Recorded Lien
- If the commercial property being acquired has a recorded environmental lien, will that disqualify the loan?
- 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?
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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