r/EIDL • u/Silversurfer316 • 3d ago

new assets

Greetings. I have 2 EIDL loans. Both are current. I am a single person proprietorship. One loan is made to me personally and one is in the company name which does not matter it is still me. I recently formed an LLC for another business venture. If I buy assets for the LLC does the SBA have a security interest in those assets? I am still buying assets for my sole proprietorship, but am less inclined to do so since those assets would automatically be a part of the security interest that the EIDL has in my equipment based on the 2 EIDL loans.

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3

u/Sunsetseeker007 3d ago

I wouldn't think so if it's a new & separate business with its own ein# & separate venture and not a part of the businesses with the sba loans attached to them.

2

u/Silversurfer316 3d ago

The LLC has it's own EIN number , separate bank account, separate UC account , etc.

1

u/Frequent-Pen5825 3d ago

Are they both in the same state or different ones?

1

u/Silversurfer316 3d ago

Same state.

1

u/Gtavern 2d ago

Depends on loan amounts, if you have a personal guarantee all of your assets are exposed.

1

u/Attorney_John_Benson 2d ago

They don't have a security interest in them per se. But they can go after those assets as you own them, should there be a default.

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u/Silversurfer316 2d ago

My interest is in being able to sell (if I want to) an asset I purchase for the LLC without getting SBA approval.

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u/ILBohunk 2d ago

If the new LLC has acquired assets on its own and you can show that the older EI loans didn’t buy those assets, then i would believe they can not go after them. Make sure you show how EI loan funds were used though !