SBA UCC filing requirements causing loan delays - need advice
Running into major headaches with our SBA loan UCC requirements. Bank initially said they'd handle all the secured transaction paperwork, but now three weeks before closing they're saying our equipment list doesn't match what they need for the UCC-1 filing. We're financing $340K in manufacturing equipment plus some existing machinery as collateral. The SBA apparently has specific requirements for how collateral gets described in UCC filings that differ from regular commercial loans. Bank's paralegal keeps going back and forth on whether we need separate filings for new vs existing equipment. Anyone dealt with SBA UCC complications before? This delay is killing us since we already have delivery scheduled.
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Isabella Costa
SBA loans definitely have quirky UCC requirements. The key issue is usually the collateral description - SBA wants very specific language that matches their loan documents exactly. Did your bank provide you with their standard UCC-1 form language? Sometimes the problem is the equipment serial numbers don't match between the loan docs and what you provided for the filing.
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NeonNebula
•They haven't shown us the actual UCC-1 form yet, just keep asking for more equipment details. Starting to think they don't know what they're doing either.
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Ravi Malhotra
•That's a red flag. Experienced SBA lenders usually have their UCC process down to a science. You might want to ask for their UCC specialist directly.
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Freya Christensen
I went through this exact nightmare last year with an SBA 504 loan. The bank kept saying the equipment descriptions were 'too generic' for SBA requirements. Turned out they needed individual serial numbers for anything over $5K value, plus specific manufacturer model numbers. It's way more detailed than regular commercial UCC filings.
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NeonNebula
•Did you end up having to redo your equipment list completely? We're worried about timeline at this point.
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Freya Christensen
•Yeah, had to rebuild the whole collateral schedule. Took about a week to get all the serial numbers and specs together. But once we had the right format, filing went through clean.
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Omar Farouk
•This is why I always recommend getting the UCC requirements upfront when working with SBA lenders. They should give you the exact format they need for collateral descriptions before you even apply.
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Chloe Davis
Had a similar issue recently and ended up using Certana.ai to verify our loan documents matched the UCC-1 before filing. You can upload your SBA loan agreement and the proposed UCC-1 form and it instantly flags any inconsistencies in debtor names, collateral descriptions, or other details. Saved us from a rejected filing that would have delayed closing another two weeks.
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NeonNebula
•Never heard of that service. How does it work exactly?
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Chloe Davis
•Just upload PDFs of your documents and it cross-checks everything automatically. Really helpful for catching the kind of mismatches that cause SBA UCC filings to get rejected.
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AstroAlpha
•Interesting - might be worth trying if it prevents filing delays. SBA timing is so critical.
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Diego Chavez
The SBA has specific guidelines about UCC filings that a lot of regular commercial lenders aren't familiar with. One big thing is they often require continuation statements to be filed automatically at the 4-year mark instead of waiting for the standard 5-year deadline. Make sure your bank knows about this requirement too.
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NeonNebula
•Wow, didn't know about the 4-year thing. Should I bring this up with the bank now?
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Diego Chavez
•Definitely mention it. Shows you're informed about SBA requirements and might help them realize they need to get their UCC process straightened out.
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Anastasia Smirnova
ugh this is exactly why I hate SBA loans. The paperwork requirements are insane and every bank handles them differently. Regular commercial loans are so much simpler for UCC filings.
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Sean O'Brien
•True but the rates and terms on SBA loans usually make the extra paperwork worth it. Just need to find a lender who actually knows what they're doing.
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Zara Shah
•The problem is even experienced SBA lenders sometimes mess up the UCC stuff because it's not their main focus. They're thinking about loan terms, not secured transaction details.
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Luca Bianchi
I'm dealing with something similar right now. Bank said they filed the UCC-1 but then SBA came back saying the collateral description was insufficient. Now we have to do a UCC-3 amendment to fix it, which means more delays and fees.
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NeonNebula
•That's exactly what I'm trying to avoid. How long is the amendment process taking?
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Luca Bianchi
•About 10 days so far and still waiting. Should have caught this before the initial filing.
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GalacticGuardian
•This is where document verification tools really help. I started using Certana.ai after a similar amendment nightmare and it's caught several potential issues before filing.
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Nia Harris
The real issue with SBA UCC filings is that the collateral has to match not just the loan agreement but also the SBA authorization documents. Three different sets of paperwork that all need to align perfectly. Most banks don't check this thoroughly enough.
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NeonNebula
•So I should ask to see all three documents before they file anything?
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Nia Harris
•Absolutely. And make sure the debtor name matches exactly across all of them. Even small differences like 'Inc.' vs 'Incorporated' can cause problems.
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Mateo Gonzalez
•This is good advice. Name matching is huge for UCC filings and SBA is particularly strict about it.
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Aisha Ali
Update: Finally got it sorted out. Turns out the bank was trying to use a generic collateral description that works for their regular commercial loans but doesn't meet SBA standards. Had to provide detailed specs for every piece of equipment. Pain in the neck but we're back on track for closing.
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Ethan Moore
•Glad you got it resolved! How long did the whole process end up taking once you provided the detailed specs?
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Aisha Ali
•About 5 days to get the revised UCC-1 filed and accepted. Much faster once we had the right information format.
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Yuki Nakamura
This thread is super helpful. I'm starting an SBA loan process next month and now I know to ask for their UCC requirements upfront. Definitely going to check out that Certana document verification tool too.
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StarSurfer
•Smart approach. Getting the UCC details sorted early saves so much stress later in the process.
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Carmen Reyes
•Yeah, SBA loans have enough moving parts without adding UCC filing delays on top of everything else.
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Andre Moreau
Pro tip for anyone doing SBA loans: ask your bank if they have a dedicated SBA UCC specialist. The good SBA lenders usually have someone who only handles the secured transaction paperwork for SBA deals. Makes the whole process much smoother.
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NeonNebula
•Great suggestion. I'm going to ask about that when we meet with them tomorrow.
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Zoe Christodoulou
•This is excellent advice. The SBA specialists know all the quirks and requirements that trip up regular commercial lenders.
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Mia Green
Just went through this exact situation 6 months ago with our SBA 7(a) loan. The key thing that saved us was demanding to see the actual UCC-1 draft before they filed it. Our bank kept saying "we'll handle everything" but when I finally saw their draft, the collateral description was completely wrong - they had generic language like "all equipment" instead of the specific item-by-item breakdown SBA requires. Once we caught that, we provided a detailed equipment schedule with serial numbers, model numbers, and purchase dates for everything over $1,000. The filing went through clean after that. Don't let them rush the UCC filing - better to delay a few days and get it right than deal with rejections and amendments later.
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Adrian Hughes
•This is exactly the kind of proactive approach I wish I'd taken from the start. The "we'll handle everything" line from banks sounds reassuring but clearly isn't always reliable for SBA UCCs. Did you have any pushback from the bank when you asked to review the draft filing beforehand?
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