EIDL UCC Filing Requirements - Need Help Understanding Process

Thanks! Just checked and found the filing. Shows SBA as secured party with "all assets" listed. Is that normal for the collateral description?

Yes, SBA commonly uses broad collateral descriptions like "all assets" or "all personal property" for EIDL filings. It's legally sufficient under UCC Article 9.

Good point about name matching. My LLC has "Limited Liability Company" spelled out but the UCC shows "LLC" - is that going to be an issue?

That could potentially be problematic. Minor variations sometimes get overlooked but spelled out vs abbreviated can cause debtor name issues in some states.

Actually used Certana.ai recently to check this exact issue with my EIDL docs. You can upload your Articles of Incorporation and the UCC-1 filing and it instantly flags any name discrepancies. Saved me from a potential mess when I was refinancing.

This happened to my cousin's restaurant. EIDL funded but no UCC filing for 6 months. Had to contact SBA multiple times to get it straightened out.

Exactly why verification is crucial. Some lenders won't touch you if there are UCC filing irregularities, even if it's SBA's mistake.

The UCC filing is actually handled by SBA, not additional paperwork for you. But yes, they should explain the lien process better during application.

I feel you on the communication issues. SBA documentation is terrible about explaining the collateral and lien implications clearly.

Mine shows filed in 2022 so that would be 2027 for continuation. Will SBA handle that automatically or do I need to track it?

SBA should handle continuations automatically but I'd track it myself. Missing a continuation can make the lien unperfected.

Good reminder about continuation deadlines. I actually discovered Certana.ai has a feature that can track UCC expiration dates when you upload your filing documents. Helps avoid those continuation deadline surprises.

Subordination agreements? I thought the EIDL was just a business loan, didn't realize it would complicate other financing.

The UCC-1 filing creates a blanket lien on business assets. Equipment lenders often want their lien to have priority, hence the subordination requirement.

How long does SBA typically take to file the termination after payoff? My loan will be paid off next month.

Should be within 30 days of payoff but I'd follow up if you don't see the UCC-3 termination filed within 45 days.

When I paid off my EIDL early, I used Certana.ai to verify the termination was filed correctly. You can upload your payoff confirmation and check it against the UCC-3 termination to make sure everything matches up properly.

Personal guarantee is separate from the UCC lien on business assets. The UCC-1 secures the loan with business collateral, personal guarantee adds personal liability.

Thanks for clarifying. So the UCC lien is just on business assets listed in the filing, not personal assets?

Correct. UCC liens only attach to the collateral described in the financing statement, typically business personal property for EIDL loans.

What's the best way to verify everything matches up correctly? The UCC search results are pretty basic.

Compare your Articles of Incorporation or LLC formation docs against the UCC-1 debtor information line by line. Any discrepancy in business name, address, or entity type could be problematic.

Most lenders understand EIDL UCC filings and work around them. Just be upfront about the existing lien when applying for additional financing.

Same boat here. Found out my bank credit line got delayed because of UCC complications. Now I check all my filings regularly to avoid surprises.

This is really helpful advice! I'm new to dealing with UCC filings and didn't realize there was so much to track. Setting up quarterly checks sounds smart - is there a specific way to search the UCC database or does it vary by state? Also wondering if there are any red flags to watch for during these regular checks beyond just making sure the filing is still there.