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COVID EIDL Subordination Submission Process

Summary

An SBA description of the COVID EIDL subordination submission process, for requesting that SBA subordinate its lien on collateral pledged to secure a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower is to contact the assigned Disaster Loan Servicing Center and provide the reason for the request, the business name, the SBA loan number, the type of business, the names and percent ownership of current owners and principals, and the borrower's consent to verify information, among other items. The document lists the Disaster Loan Servicing Centers.

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Full text

                                  COVID EIDL SUBORDINATION SUBMISSION PROCESS | PAGE 1




Overview
Explained below is the process for requesting a subordination of a lien on collateral that was pledged to secure an SBA
COVID-19 Economic Injury Disaster Loan (EIDL).



To request that SBA subordinate its lien on an existing COVID EIDL loan:
1. Contact the assigned Disaster Loan Servicing Center to request a Lien Subordination. (See the list below to
   determine the appropriate Disaster Loan Servicing Center.)

2. Provide the following:
      ❒ Reason for lien subordination request
      ❒ Business Name
      ❒ SBA Loan Number (Existing COVID EIDL)
      ❒ State whether business is a:
          • Sole Proprietorship
          • Limited Liability Corporation
          • Partnership (GP, LP, or LLP)
          • Corporation
          • Other
      ❒ Names of current owners and principals of the business, and the percent ownership of each in the business
      ❒ Borrower’s Consent To Verify Information And 3rd Party Authorization For Disaster Loans
        (Borrower’s Authorization)
      ❒ Copy of the Commitment Letter/Agreement, if the request for lien subordination is based on a pending
        application for an SBA 504 or 7(a) loan
      ❒ Listing of collateral to be subordinated, including:
          • Identifying information, such as VIN or serial number (if available)
          • Lien Search indicating the SBA’s lien position
          • Proof of Hazard Insurance
3. Submit this information to the assigned Disaster Loan Servicing Center.

4. Once received, SBA will review the submission.

5. If approved, SBA will email an executed Subordination Agreement to the Borrower or Lender at the address
   provided. The Borrower or Lender will then return the signed Lien Subordination Agreement to SBA using the
   email address listed in the Subordination Agreement.


NOTE: Requests for subordination on SBA 7(a) and 504 loans will not require monetary consideration for approval.
Please be advised that during its review, SBA servicing center staff may require additional information to resolve any
discrepancies between the information and the loan record. Additional information may include documentation of
post-funding changes in ownership.


               For questions concerning a submitted request, please call or e-mail as indicated below:
  Birmingham Disaster Loan Servicing Center, 800-736-6048 or El Paso Disaster Loan Servicing Center, 800-487-6019
                            COVID EIDL SUBORDINATION SUBMISSION PROCESS | PAGE 2




                             DESIGNATED SERVICING AREA
BIRMINGHAM (Bham.Realty@sba.gov) services loans    EL PASO (ElPasoDLSC@sba.gov) services loans
from businesses located in the following states.   from businesses located in the following states.
Alabama                                            Alaska
American Samoa                                     Arizona
Connecticut                                        Arkansas
Delaware                                           California
District of Columbia                               Colorado
Federated States of Micronesia                     Hawaii
Florida                                            Idaho
Georgia                                            Iowa
Guam                                               Kansas
Illinois                                           Louisiana
Indiana                                            Missouri
Kentucky                                           Montana
Maine                                              Nebraska
Marshall Islands                                   Nevada
Maryland                                           New Mexico
Massachusetts                                      North Dakota
Michigan                                           Oklahoma
Minnesota                                          Oregon
Mississippi                                        Puerto Rico
New Hampshire                                      St. Croix, VI
New Jersey                                         South Dakota
New York                                           Texas
North Carolina                                     Utah
Northern Mariana Islands                           Washington
Ohio                                               Wyoming
Pennsylvania
Republic of Palau
Rhode Island
South Carolina
Tennessee
US Virgin Islands (St. Thomas & St. John)
Vermont
Virginia
West Virginia
Wisconsin

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2021-10_SBA_COVID_EIDL_Subordination_Submission_Process-508.pdf
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