Glossary · People and paperwork
Secured creditor
In short
A lender or party that holds a security interest in specific assets (collateral) of a borrower. If the borrower defaults, the secured creditor has the right to seize those assets.
What it means in a deal
As an SBA 7(a) borrower, your lender will be a secured creditor, typically with a first lien position on business assets. You need to ensure any prior liens are released or subordinated before closing. This protects the lender's collateral interest.
Related terms
Common questions about Secured creditor
- When is an intercreditor agreement required between a 7(a) lender and another secured creditor for an SBA loan?
- What are the SBA's requirements for subordinating its lien position to another creditor on a 7(a) loan?
- Is a loan secured by personal assets eligible for the down payment?
- Can a seller note on full standby still be secured by business assets?
- Can a seller note on full standby still be secured by specific business assets?
- Can I use a secured personal line of credit as part of my equity injection?
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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