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CESC Subordination Requirement Letter

Summary

Requirements letter from the U.S. Small Business Administration's COVID EIDL Servicing Center listing what borrowers and guarantors must provide for SBA to consider a request to subordinate its lien on real property or business assets securing a COVID EIDL loan. It states that the letter is not a commitment by the SBA and that approval may be conditioned on curing defaults or correcting collateral deficiencies. General requirements include a letter explaining the intended use of funds, the borrower authorization form, a UCC Lien Search showing SBA's lien position, proof of insurance and the lender's commitment or term sheet. Real estate subordinations also require settlement statements, a title report dated within 6 months, a current valuation report, payoff statements and the lien instrument.

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Full text

                                 U.S. SMALL BUSINESS ADMINISTRATION
                                  COVID EIDL SERVICING CENTER
                                       COVID EIDL SUBORDINATION
                                        REQUEST REQUIREMENTS
ATTENTION:

This requirements letter is not a commitment by the SBA. Any commitment made by the SBA will be provided
separately in writing. Approval of any request may be conditioned on curing defaults, correcting any collateral
deficiencies or issues with loan documents and/or payment of material monetary consideration.

All Borrowers and/or Guarantors are required to provide the following for all applicable sections. Additional
documentation may be required for thorough analysis.

For the U.S. Small Business Administration (SBA) to consider a Subordination request, on Real
Property/Business Assets held as collateral, the below documentation must be provided.

GENERAL REQUIREMENTS:

      1. A detailed letter from the borrower(s) or guarantor(s) (if any) explaining the intended use of funds.
      2. Completed, signed and dated Consent to Verify Information and 3rd Party Authorization (Borrower
         Authorization) for all SBA borrower(s) and/or guarantor(s) (if any). (hyperlink to fillable PDF)
      3. A copy of the UCC Lien Search indicating the SBA’s lien position
      4. Proof of Insurance as required by the SBA Loan Authorization and Agreement
      5. Lender Loan Commitment Agreement / Term Sheet

 Additional requirements for Real Estate subordinations:
      1. Settlement Statement(s)
      2. Title Report (dated within 6 months)
      3. Current Valuation Report
      4. Payoff Statement(s)
      5. Current Profit & Loss (If cash out or business expansion; must be signed & dated)
      6. A copy of Mortgage, Deed of Trust, or Other Lien Instrument

 Please submit the above required information to the US Small Business Administration at the Covid EIDL
 Servicing Center as shown below. Complete information packages may be emailed to
 Covideidlservicing@SBA.gov.

 Covid EIDL Servicing Center
 E-mail: Covideidlservicing@SBA.gov
 Box.com: Box.com - Upload files to Covid EIDL Servicing Center
 Toll Free Phone: (833) 853-5638
 Fax: (202) 481-5799

File and source

File
2025-05_CESC-Subordination-4.2025-V1.pdf
Size
220,516 bytes
SHA-256
b0edba5d7f60f5c809ffd7bfd0ceb45eb759990be73b64f0d1513831dea36743
Our copy
2025-05_CESC-Subordination-4.2025-V1.pdf
Original
www.sba.gov
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