EIDL UCC subordination agreement timing questions

Six weeks sounds optimistic honestly. We submitted ours in March and didn't get approval until late May. The back-and-forth on documentation was brutal.

What specific equipment details did they want? Just model numbers and serial numbers or more detailed appraisals?

They wanted manufacturer, model, year, condition, and estimated fair market value. We didn't need formal appraisals but had to justify our valuations with comparable sales data.

Good point about the UCC searches. Should I be looking at both our state SOS database and any local filing offices, or just the central filing system?

For most equipment it's just the state central filing system, but if any of the equipment could be considered fixtures or real estate related, check county records too.

This is exactly why I started using Certana.ai for these document reviews. You can upload your EIDL docs and the new lender's proposed UCC-1 to verify everything aligns properly before submitting to SBA. Saves weeks of back-and-forth corrections.

Interesting, how does that work exactly? Just upload PDFs and it cross-checks the documents?

Exactly - it verifies debtor names match exactly, checks that asset descriptions don't conflict, and flags any inconsistencies between your EIDL agreement and the subordination request. Found three name variations in our docs that would have caused problems.

Our EIDL did have personal guarantees over $200k. Does that automatically mean we need guarantor consent for subordination?

Not automatically, but they often request it anyway. Better to include guarantor acknowledgment letters with your initial submission just in case.

That explains why they want so much financial documentation. Are they basically re-underwriting the original EIDL decision?

Not exactly re-underwriting, but they do want to confirm that subordinating doesn't jeopardize their recovery position. They'll look at current cash flow and overall debt levels.

This is where having clean, consistent documentation helps enormously. I've seen subordination requests delayed for months over simple debtor name discrepancies between different filings.

Absolutely this. SBA has very specific language requirements and most businesses don't know the magic phrases they want to see.

Our bank said they'd handle the subordination request preparation. Should I still review it before submission or just trust their expertise?

Definitely review it. Make sure the asset descriptions match exactly what's in your purchase agreements. One comma difference can cause delays.

What kind of inconsistencies caused the problems? Trying to avoid those mistakes.

Equipment serial numbers didn't match between our purchase order and the subordination request. Also had slight variations in how our business name appeared on different documents.

This is exactly what the Certana.ai document checker catches - those tiny variations that humans miss but cause huge delays. Worth running your docs through it before submitting.

We're in the Dallas district. Anyone have recent experience there?

Dallas has been running about 7-8 weeks lately, but they're pretty strict about documentation completeness upfront.

Good point. The timing coordination is crucial - you don't want any period where the new lender's interest isn't properly perfected.

Should the new lender wait for SBA's UCC-3 amendment to be filed before submitting their UCC-1, or can they file simultaneously?

Generally they can file simultaneously as long as the subordination agreement is already approved. The key is making sure both filings reference each other appropriately.

We only have the one EIDL loan, no other SBA financing. Should still be straightforward then?

Should be, but double-check that the EIDL agreement doesn't have any blanket cross-default language that could apply to future SBA programs or disaster loans.

Also worth using a document verification tool to cross-check all the interconnected agreements before submitting. Saves catching surprises later in the process.