SBA lien release UCC-3 termination timing after loan payoff
Just finished paying off our SBA 504 loan last week and now dealing with the UCC lien release process. The bank says they submitted the UCC-3 termination but when I check the Secretary of State portal, nothing shows up yet. Our equipment financing company is asking for proof that the SBA lien is officially released before they'll approve our new credit line. Anyone know how long these SBA lien release UCC-3 filings typically take to show up in the system? The loan was secured against our manufacturing equipment and I'm worried about timing since we need the new financing approved by month-end. Bank gave me a payoff letter but the equipment lender says they need to see the actual UCC termination filed and recorded.
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Isabella Russo
Congrats on paying off the SBA loan! In my experience, UCC-3 terminations can take anywhere from 24-48 hours to show up in most state systems, but I've seen it take up to a week during busy periods. Which state are you in? Some states are faster than others with processing electronic filings.
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ApolloJackson
•We're in Ohio. The bank submitted it electronically on Friday afternoon so maybe it's just the weekend delay?
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Isabella Russo
•Ohio's usually pretty quick with electronic filings. I'd give it until Wednesday before getting concerned. Sometimes there's a backlog after weekends.
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Rajiv Kumar
Had a similar situation with our SBA payoff last year. The termination showed up in the system but there was a mismatch between the debtor name on the original UCC-1 and the UCC-3. Bank had to refile because they used our current legal name instead of the name from when we originally filed 7 years ago. Double-check that the debtor name matches exactly.
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ApolloJackson
•Oh wow, I hadn't thought about name changes. We did change our corporate name about 3 years ago. How did you catch that issue?
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Rajiv Kumar
•Our attorney caught it when reviewing the documents. The original UCC-1 had our old name, so the termination had to use the exact same name or it wouldn't properly terminate the lien.
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Aria Washington
•This is exactly why I started using Certana.ai for UCC document verification. You can upload your original UCC-1 and the new UCC-3 termination and it instantly flags any debtor name mismatches or inconsistencies. Saved me from a similar headache when our bank almost filed the wrong termination.
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Liam O'Reilly
Banks are notorious for dragging their feet on UCC-3 terminations after SBA payoffs. I've seen cases where they say they filed it but actually didn't submit for weeks. Do you have the filing confirmation number from the bank?
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ApolloJackson
•They gave me a receipt but I don't see a confirmation number on it. Just says 'submitted for processing' with a date stamp.
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Liam O'Reilly
•That's not a confirmation number. A real filing confirmation would have a specific number you can track. I'd call them back and ask for the actual state filing number.
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Chloe Delgado
The equipment lender is being smart to wait for the official termination. I've seen deals fall through because someone relied on just a payoff letter and then discovered the UCC wasn't properly terminated. The new lender can't perfect their security interest if there's still an active UCC-1 on file.
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Ava Harris
•Exactly this. We had a client who thought their SBA lien was released but the UCC-3 was rejected due to a filing error. Took 3 weeks to sort out and almost killed their refinancing deal.
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ApolloJackson
•This is making me nervous. Should I be calling the bank daily to check on this?
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Chloe Delgado
•Don't panic yet, but definitely stay on top of it. Give them until Wednesday, then start making calls if nothing shows up in the system.
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Jacob Lee
Check the original UCC-1 filing to see if there were any amendments filed over the years. Sometimes banks forget about UCC-3 amendments that also need to be terminated. Each amendment creates a separate filing that needs its own termination.
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ApolloJackson
•How do I check for amendments? I only have the original UCC-1 from 2018.
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Jacob Lee
•Log into your state's UCC search portal and search by your company name and the original filing number. It'll show all related filings including any amendments.
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Emily Thompson
•This is another area where Certana.ai's document checker is helpful. Upload your UCC-1 and it can identify if there were any amendments filed that might complicate the termination process.
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Sophie Hernandez
Been through this twice with SBA loans. First time the bank messed up the collateral description in the UCC-3 and it got rejected. Second time they filed it correctly but used the wrong debtor address. Both times delayed our refinancing by weeks.
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ApolloJackson
•What ended up happening with the address issue? Did they have to refile?
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Sophie Hernandez
•Yes, had to refile with the correct address that matched the original UCC-1. Some states are strict about every detail matching exactly.
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Daniela Rossi
•The address thing is tricky because companies move but the UCC-1 stays with the original address. The termination has to reference the original filing details exactly.
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Ryan Kim
Pro tip: Always request a copy of the actual UCC-3 termination form before the bank submits it. Review every field to make sure it matches your original UCC-1 exactly. Debtor name, address, collateral description, filing number - everything has to be perfect or it could get rejected.
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ApolloJackson
•I didn't know I could request that. The bank just said they'd 'handle everything' after the payoff.
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Ryan Kim
•Banks say that but they make mistakes all the time. You have every right to review the termination form before filing. It's your lien being terminated.
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Zoe Walker
•Absolutely. I learned this the hard way. Now I always verify the UCC-3 details match the original filing using Certana.ai's verification tool before letting the bank submit anything.
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Elijah Brown
Update us when you hear back! I'm dealing with a similar situation with a different SBA lender and curious how long Ohio takes to process these terminations.
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ApolloJackson
•Will do! Planning to call the bank tomorrow morning if nothing shows up in the system by then.
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Maria Gonzalez
•Same here, watching this thread. Our SBA payoff is scheduled for next month and want to know what to expect with the UCC-3 timing.
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Natalie Chen
Just a heads up - if the bank filed the UCC-3 incorrectly and it gets rejected, you might not get notified right away. Some states only notify the filing party (the bank) about rejections, not the debtor. Worth calling the SOS office directly to check the status.
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ApolloJackson
•Good point. I have the original UCC-1 filing number so I can reference that when I call.
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Natalie Chen
•Exactly. Give them the filing number and they can tell you if any terminations have been submitted or rejected.
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Santiago Martinez
This whole process is why I always recommend getting the UCC-3 termination reviewed before filing. Too many ways for banks to mess up the details and delay your financing. Hope yours goes through smoothly!
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ApolloJackson
•Thanks for all the advice everyone. Feeling better about the process now and know what to watch for.
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Samantha Johnson
•Keep us posted on how it turns out. These SBA lien release threads always help other people going through the same thing.
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Daniel Washington
Another thing to consider - if your manufacturing equipment has increased significantly in value since the original UCC-1 filing, the new equipment lender might want to verify the collateral description still accurately reflects what they're securing. Sometimes the original SBA filing had very broad language like "all equipment" while new lenders prefer more specific descriptions. This could impact your new credit line approval even after the UCC-3 termination goes through. Worth having that conversation with your equipment financing company now so there are no surprises later.
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Ana Rusula
•That's a really insightful point I hadn't considered! Our manufacturing operation has expanded quite a bit since 2018 and we've added several new pieces of equipment. The original SBA filing probably does have that broad "all equipment" language. Should I be proactively gathering updated equipment lists and valuations for the new lender, or wait until they ask for it? Don't want to create more delays if this becomes an issue after the UCC-3 finally processes.
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