Experience with transferring an EIDL during a sale?

intermediary profile

March 27, 2024

by an intermediary from University of Portland in Hickory, NC, USA

Hello, I'm looking for any experience shares from people who have been involved with a business sale and the EIDL loan is assumed by the buyer. I understand that it is technically possible with SBA approval, and I'd like to know more details about what has worked and hasn't worked in your case. Thanks!


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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We have closed many transactions with EIDL loans in place and we have yet to see the SBA approve a transfer of one even though several borrowers have tried. I think the SBA prefers to get repaid on that low cost debt versus allowing a transfer from what I am seeing and hearing. But maybe someone else has seen something different.
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