Glossary · People and paperwork
UCC-1(Uniform Commercial Code financing statement)
In short
A UCC-1, or Uniform Commercial Code financing statement, is a public notice filed by a lender to establish their legal claim on specific collateral. This filing ensures the lender has priority over other creditors if the borrower defaults.
What it means in a deal
Your SBA lender will file a UCC-1 statement to perfect their lien on the business's assets, including accounts receivable, inventory, and equipment. This ensures their security interest is publicly recorded and takes priority over subsequent claims. You should conduct a UCC search during due diligence to identify existing liens on the seller's assets.
Related terms
Common questions about UCC-1
- Is a UCC-1 filing sufficient to perfect a lien on business assets?
- How does the SBA define an "associate" for affiliation purposes under 13 CFR 121?
- Can an SBA 7(a) loan finance 100% of the goodwill in a $1,500,000 business acquisition?
- What if the business assets are located in multiple states, requiring multiple UCC filings?
- How does SBA define an 'associate' for affiliation purposes under 13 CFR 121, impacting size determination?
- How does the SBA define an 'associate' for affiliation purposes under 13 CFR 121, beyond direct ownership?
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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