The EIDL Loan Agreement placed liens on business assets available (for loans > $25k) and requires prior written permission from the SBA to either subordinate to new financing and/or to allow the sale or transfer of assets encumbered.
Subordination Requests for EIDL Loans
1. The borrower must provide SBA written authorization to release information to the originating lender and acknowledgment of a lien subordination request.
2. Scan and attach to an email the following documents:
- The name and address of Borrower along with loan number and amount of loan.
- The name and address of the originating lender.
- The name, address, e-mail, and phone of a contact person for the bank to send subordination agreement, if approved.
- The amount and purpose of the proposed loan.
- Copy of the filed SBA UCC-1 Financing Statement.
3. Send the request to email@example.com
Please see SOP 50 57 for more details on subordinations.
Sale, Release, or Substitution of EIDL Collateral
- The borrower should provide their name, address, loan number, and amount of the loan.
- Provide a copy of the filed SBA UCC-1 Financing Statement and identify the collateral to be released/substituted.
- Provide the purpose of the request and as much information as is available to make it clear what is needed and why.
- Email this information to firstname.lastname@example.org