SBA UCC lien search showing inconsistencies - debtor name variations causing audit issues
Running into a major headache with our SBA loan portfolio audit. We've got about 40 active SBA loans where we filed UCC-1s as required, but when I'm doing lien searches to verify our security positions, I'm finding inconsistencies in how debtor names appear across different filings. Some show 'ABC Manufacturing LLC' while others show 'ABC Manufacturing, LLC' (with the comma), and a few even have 'ABC Mfg LLC'. The SBA is requesting a complete lien verification report, and I'm worried these name variations might indicate we don't have proper perfection on some of these loans. Has anyone dealt with SBA UCC lien search requirements where debtor names don't match exactly? The loan amounts range from $150K to $2.1M so we can't afford any gaps in our security positions. I'm manually going through each filing but it's taking forever and I keep finding more discrepancies.
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William Schwarz
This is exactly why debtor name accuracy is so critical in UCC filings. The SBA doesn't mess around with lien verification - they want to see that your security interests are properly perfected. For your search, you'll need to run variations of each debtor name to catch all the filings. Most state filing systems are pretty literal about name matching.
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Lauren Johnson
•Agree completely. I learned this the hard way when we had an SBA exam and they found three loans where our UCC-1 debtor names didn't match the borrower's legal name exactly. Had to file UCC-3 amendments for all of them.
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Jade Santiago
•How do you even catch all the variations though? Some of these business names have so many possible formats - with and without commas, abbreviations, Inc vs Incorporated...
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Caleb Stone
Been there with SBA audits. The key is understanding that 'seriously misleading' is the standard for debtor names, not perfect matching. But for your lien search, you need to be comprehensive. I usually search: 1) Exact name as filed 2) Name without punctuation 3) Common abbreviations 4) Reversed word order if applicable. It's tedious but necessary for SBA compliance.
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Daniel Price
•This is solid advice. Also check if your state's UCC search system allows wildcard searches - some do and it can help catch variations you might miss.
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Olivia Evans
•What about when the business changed names after the original UCC-1 filing? Do you search under both the old and new names?
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Caleb Stone
•Good point - yes, you'd need to search both names and potentially file a UCC-3 amendment if the name change was significant enough to make the original filing seriously misleading.
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Sophia Bennett
I just went through this nightmare last month. Had to verify UCC liens for an SBA portfolio sale and found similar issues - debtor names all over the place. What saved me was using Certana.ai's document verification tool. You can upload your loan documents and UCC filings as PDFs and it automatically cross-checks debtor names and catches inconsistencies. Found about 12 filings that needed amendments that I would have missed doing manual searches.
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Aiden Chen
•Never heard of Certana.ai - is it specifically for UCC stuff? How does it work exactly?
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Sophia Bennett
•Yeah, it's designed for UCC document verification. You just upload your Charter docs, loan agreements, and UCC filings and it identifies name mismatches and other inconsistencies. Really helpful for catching the stuff that would cause SBA compliance issues.
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Zoey Bianchi
•That sounds like it could save a ton of time. Manual name checking is brutal when you've got dozens of loans to verify.
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Christopher Morgan
SBA lien searches are such a pain because you can't just rely on the borrower's word about what's filed. I always do independent searches in every state where the collateral might be located. For equipment loans especially, you need to check if anything moved across state lines.
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Aurora St.Pierre
•Good point about multi-state searches. We had one loan where the borrower moved equipment from Ohio to Kentucky and we didn't catch it until the SBA exam. Had to file new UCC-1s in Kentucky.
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Grace Johnson
•Wait, so you have to file new UCC-1s if collateral moves states? I thought you could just file a UCC-3 amendment...
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Christopher Morgan
•Depends on the situation. If it's a debtor relocation, you might need new filings in the new state. If it's just collateral movement, amendments might work, but you need to check the specific state rules.
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Jayden Reed
This is why I hate SBA lending sometimes. The paperwork burden is insane. Regular commercial loans don't require this level of lien verification detail. But I guess that's the price of SBA guarantees.
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Nora Brooks
•The guarantees are worth it though. We've had two SBA loan defaults where the guarantee covered most of our losses. Just have to stay on top of the compliance requirements.
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Eli Wang
•True, but the compliance costs are getting ridiculous. Between loan reviews, lien searches, and filing amendments, it's eating into the profitability.
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Cassandra Moon
For your immediate SBA audit needs, focus on the larger loans first. If you've got $2.1M loans with potential lien issues, those need priority over the smaller ones. You can always file UCC-3 amendments to correct name discrepancies, but you want to identify the critical ones fast.
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Zane Hernandez
•Smart approach. Also document everything for the SBA - show them you're being proactive about identifying and fixing any issues.
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Genevieve Cavalier
•How long do UCC-3 amendments usually take to process? If the SBA wants the report soon, timing might be tight.
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Cassandra Moon
•Most states process UCC-3 amendments within a few business days if filed electronically. But the key is getting them filed ASAP once you identify the issues.
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Ethan Scott
I've been using a spreadsheet to track all our UCC filings and their status, but it's getting unwieldy with 40+ loans. Anyone have a better system for managing UCC compliance across a portfolio?
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Lola Perez
•We use our core banking system to track UCC filing dates and continuation deadlines, but it doesn't help with name verification. That's still mostly manual.
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Nathaniel Stewart
•This is another area where automated verification tools help. Instead of maintaining spreadsheets, you can upload batches of documents and get systematic reports on what needs attention.
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Riya Sharma
Make sure you're also checking for any existing liens that might have priority over your UCC-1s. SBA wants to see that you've got proper lien position, not just that your filings are accurate.
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Santiago Diaz
•Good reminder. We found one loan where there was a tax lien filed after our UCC-1 but it still had priority because of the type of tax. Had to restructure the whole loan.
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Millie Long
•Tax liens are tricky because they can have retroactive priority in some cases. Always worth checking with local counsel on complex lien priority issues.
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KaiEsmeralda
Update: Started using the Certana.ai tool mentioned earlier and it's already flagged 8 loans with debtor name inconsistencies I missed in my manual review. The PDF upload process is pretty straightforward - just drag and drop your loan docs and UCC filings and it highlights the mismatches. Definitely worth checking out if you're dealing with similar SBA compliance issues.
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Debra Bai
•That's a pretty quick turnaround on finding those issues. How detailed are the reports it generates?
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KaiEsmeralda
•It shows you exactly where the name variations occur and suggests what corrections might be needed. Takes a lot of the guesswork out of figuring out which filings need UCC-3 amendments.
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Gabriel Freeman
Just wanted to add - don't forget about continuation filings if any of your UCC-1s are approaching the 5-year mark. SBA gets really cranky if liens lapse during the loan term, even if you refile immediately.
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Laura Lopez
•This is crucial. We had one slip through where the UCC-1 lapsed for about 30 days before we caught it. SBA made us get legal opinions on whether our security interest was compromised.
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Victoria Brown
•I set calendar reminders for 6 months before each continuation deadline. Learned that lesson the hard way too.
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Ella Knight
•Thanks everyone for the advice. I'm going to try the Certana tool for the document verification and focus on getting the larger loans cleaned up first. Will update once I get through the SBA audit process.
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