Glossary · Reading the business
Records search
In short
A formal check for liens, judgments, and bankruptcies against the business or seller. It ensures you're buying assets free and clear, or that existing liens are properly released at closing.
What it means in a deal
Your attorney or lender will conduct UCC lien searches and judgment searches to uncover any claims on the business's assets. This protects you from inheriting the seller's undisclosed debts or having issues with collateral. Verify that all prior liens are addressed and released before closing.
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.
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Common questions about Records search
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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