EIDL Loan provisions - Spidell

EIDL Loan provisions

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Message Board EIDL Loan provisions

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      The EIDL loan documents provide that all tangible personal property is collateral for the loan and that “Borrower will not sell or transfer any collateral … without the prior written consent of SBA”. We have attempted to inquire of SBA through the help line and email and have no answer as to how this is actually administered over the 30 life of the loan. To obtain written approval for every replacement of smallwares in a restaurant, as an example, would not seem to be feasible. Bigger items, such as vehicles, present their own issues to obtain SBA approval before trading a vehicle. Does anyone have experience or know how this provision is administered?

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