Glossary · Doing the deal
UCC-1 filings
In short
These are public notices filed by lenders to claim a security interest in a borrower's assets, like equipment or inventory. As a buyer, you need to ensure the seller's UCC-1s are released at closing.
What it means in a deal
During due diligence, a lien search will reveal any existing UCC-1 filings against the business's assets. Your lender will require these to be terminated at closing so they can establish a first lien position on all business assets as collateral for your SBA loan.
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.
Related terms
Common questions about UCC-1 filings
- What if the business assets are located in multiple states, requiring multiple UCC filings?
- Is a UCC-1 filing sufficient to perfect a lien on business assets?
- If a lender obtains a blanket lien, what are the key UCC filing requirements for interstate operations?
- What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?
- How long does an independent business valuation typically take for a $1.5 million acquisition?
- When is a separate goodwill appraisal necessary for a business acquisition loan exceeding $1,000,000?
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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