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Purchase Money Security Interest (PMSI) or Release of Trade-In Request

Summary

Requirements letter from the U.S. Small Business Administration's COVID EIDL Servicing Center listing what borrowers must provide for SBA to consider a Purchase Money Security Interest (PMSI) or Release of Trade-In request on a COVID EIDL loan. It states that the letter is not a commitment by the SBA, that approval may be conditioned on curing defaults or collateral deficiencies, and that SBA may in some cases require monetary consideration. It notes that a paydown for consideration is not a regular payment and does not automatically re-amortize monthly payments. General requirements include a letter detailing the request, the signed borrower authorization, a copy of the signed sale agreement, bill of sale or settlement statement, and a UCC Lien Search.

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Full text

                             U.S. SMALL BUSINESS ADMINISTRATION
                                 COVID EIDL SERVICING CENTER
                             COVID EIDL PURCHASE MONEY SECURITY INTEREST
                                      (PMSI) or RELEASE of TRADE-IN
                                         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 and correcting
any collateral deficiencies or issues with loan documents.

Please be advised that in some limited circumstances, SBA may require monetary consideration in connection with a
PURCHASE MONEY SECURITY INTEREST (PMSI) or Release of TRADE-IN. A ‘paydown’ for consideration
is not a regular payment and regular monthly payments are not automatically re-amortized; you must request and
qualify for payment reduction.

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 PURCHASE MONEY SECURITY INTEREST (PMSI) or Release of TRADE-IN request, the below
documentation must be provided.


GENERAL REQUIREMENTS:

1. A detailed letter from the borrower(s) detailing the request.
2. Completed, signed and dated Consent to Verify Information and 3rd Party Authorization (Borrower
   Authorization) for all SBA borrower(s) .
3. Copy of the signed Agreement (Sale Agreement, Bill of Sale or Settlement Statement)
4. UCC Lien Search indicating the SBA’s lien position
5. New lender’s UCC filing or Security Agreement (PMSI claims)
6. Payoff letter(s) for any senior creditors, if applicable
7. Proof of Insurance as required by the SBA Loan Authorization and Agreement

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 E-Mailed to
Covideidlservicing@SBA.gov .



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

File and source

File
2026-07_CESC-Purchase-Money-Security-Interest-PMSI-or-Release-of-Trade-In-Request-OCIO-Approved.pdf
Size
201,153 bytes
SHA-256
6a97ea14919d53685fe2280e8fe521e5e3a6de36191059c9c71b1c113aaba820
Our copy
2026-07_CESC-Purchase-Money-Security-Interest-PMSI-or-Release-of-Trade-In-Request-OCIO-Approved.pdf
Original
www.sba.gov
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