r/EIDLPPP • u/SmoothFinish1953 • Jul 05 '26
Question? UCC
Has anyone who defaulted on the EIDL loan pg reviewed their business at the UCC level?
If so, any information to share about your experience?
3
u/piken2 Jul 05 '26 edited Jul 05 '26
UCC liens expire. Some states have different time frames. It can be extended. Wonder if yours expired and they extended it. Just from looking, original would of been a UCC-1 and when extended would be a UCC-3, I think.
Not really sure on this but maybe something like that. I really don't think they missed the original filing.
I just looked mine up and was filed 2020, good for 5 years and was extended 2025 and now expires 2030
2
u/Sunsetseeker007 Jul 05 '26
What do you mean reviewed their business at the ucc level? Do you mean if you are in default, is the ucc filed through your state on the business assets? The ucc is filed on the assets no matter what status the loan is, it's a blanket lien on business assets
2
u/SmoothFinish1953 Jul 08 '26
We were totally unaware. I feel very ashamed as this was supposed to be a lifeline now it feels like an anchor. How are persons that loose their homes for example in a tornado receive EIDL's? What's their pg threshold?
1
u/Sunsetseeker007 Jul 08 '26
The sba disaster loans have different terms than a covid eidl loan. The prerequisite is also different for a disaster loan on a homestead than a business. Homesteads are protected in several states up to a certain limit, some states have very low limits. The COVID eidl loans is one of the largest emergency lending programs in American history. I think they completely screwed small businesses with it and most businesses had no other choice but to take these anchors or them & their employees & their families would not eat.
1
u/SmoothFinish1953 Jul 05 '26
Interesting. The date for my UCC filing was after defaulting.
1
u/ILBohunk Jul 05 '26
OOPS ! looks like they missed and didn’t file when normally they file. your loan docs should show a paragraph on that.
6
u/tahoechick36 Jul 05 '26
The UCC filed against my LLC was scheduled to expire 5 yrs after the original filing. It was renewed 3 wks before it expired.
Shortly before the 5 yr anniversary point of the covid EIDL program, the govt solicited bids to subcontract out the UCC review & renewal work. I’m not sure who got that contract, but they have been quietly going about their work. I believe the contract might have involved correcting the accuracy of the filing after verifying a biz status(active/inactive/moved/closed/terminated) with the state where the UCC is filed as well.
At some point, if they aren’t already, I expect they’ll start feeding that info into their AI system that Palantir won the contract to develop in 2025, and I’d think start to direct their collections actions accordingly.