Obtaining an SBA loan when there is an EIDL loan in place?

searcher profile

September 29, 2023

by a searcher in Philadelphia, PA, USA

Working on a partial buy-in to a business where there is an EIDL loan in-place. I am told this can be solved with a subordination agreement. Does anyone have experience with this?

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commentor profile
Reply by a professional
from Babson College in Tempe, AZ, USA
Yes - the SBA lender will just write the SBA to subordinate the EIDL - it’s easily done and the SBA does not want a EIDL to prevent new SBA money from being lent. Make sure you work with a SBA lender with PLP status and I highly recommend Fran at Multifunding.
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Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA
^redacted‌ have previously commented on EIDL in the past and might be able to share some insights with you here. Thanks in advance for helping when you can! :-)
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