Just received a copy of this concerning collateral terms for >$25k EIDL loans. Figured this would occur, and suspect other terms of the agreement will be changed.
Dear Borrower:
Your business was recently approved for an Economic Injury Disaster Loan from the U.S. Small Business
Administration (SBA). The executed Loan Authorization and Agreement contains a requirement for
collateral which will require written consent of the SBA to seek future advances under any superior liens
on the collateral securing this loan. This requirement has been determined by SBA to be unnecessary and
as a result has been removed from the Loan Authorization and Agreement.
The following is the revised collateral requirement:
REQUIREMENTS RELATIVE TO COLLATERAL · Borrower will not sell or transfer any collateral
(except normal inventory turnover in the ordinary course of business) described in the "Collateral"
paragraph hereof without the prior written consent of SBA.
This letter is a permanent amendment to your Loan Authorization and Agreement.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
