All Forum Posts by: Shefali Rai

They fund the loan in lumpsum, not in intervals.  

@Edward Liu thank you - your response was very helpful. 

@Edward Liu - quick follow up on your point on the UCC as I am exploring whether to sign EIDL docs. I saw a restriction on the lease/sale of collateral and another certifying that there is no pre-existing lien. I applied from my LLC like you. Seems like there is a pov that a) lease/sale of RE properties would be ok without SBA approval and b) pre-existing mortgage of RE property under the LLC would also be ok?

@Natalie Kolodij thanks for suggesting the video - I checked it out and it was useful. 

But RE focused questions remain. @Daniel C., @James Allen and others - do you now have more clarity on the security agreement of the EIDL terms? James, my questions are similar to your original ones in the thread above: 

1. Collateral - for RE investors, assuming that the collateral definition includes the RE properties held in the LLC that applied for the loan?

2. Cannot lease RE property? - it says borrower will not lease collateral property (so RE property) without written consent from SBA. So would that mean new lease agreements need SBA approval? 

3. Free and clear? - The certifications section says that borrower certifies that collateral is free of liens. So the question is what happens if there are already mortgages on the RE 

Would be awesome if some RE lawyers on the platform could give their thoughts. 

Hi @Ward Conville - did you apply via an LLC or in your personal capacity. I am curious whether collateral includes the property belonging to the LLC ( ie the real estate property) and whether it is junior to the mortgage already in place.

@Mark S. you can go into the application and cancel/decline to sign the docs. This way, SBA will know you are not proceeding. 

@Doug Pintarch - they make you a maximum offer and your choices are only if you want lower than that. You dont have a choice to go higher. 

Thank you so much @Account Closed for sharing this very valuable information in so much detail. Appreciate it! Two questions - 1. Did you have to submit any tax returns or other financial information to get approved? 2. Did you apply via multiple LLCs? If yes, did you receive a consolidated loan across LLCs or for one LLC only.

Thanks again. We will all have the benefit of your experience with the EIDL process. 

@Mark Whittlesey thats great! Which date did you apply on? 

While applying for the EIDL I could not find anywhere on the form which allowed for attachments so did not attach anything. How did you attach things @Michael Plaks? @THU NGUYEN I called the SBA and they told me that the case has been assigned to a loan officer who will be in touch in the next 2 weeks. Seperately, I see a credit inquiry on our credit reports from the SBA