5 Tips for Moving Out of EIDL

Tip #1
If you’re carrying an Economic Injury Disaster Loan (EIDL), be aware that for any change in financing you want to do, you need to deal with your EIDL first because that loan has a lien on all of your assets.

Tip #2
You must make your new lender aware of your EIDL because that loan has to be subordinated. That means there’s an extra step involved, and it involves dealing with a third party – the SBA.

Tip #3
If you anticipate a financing change, start talking with a lender who understands the subordination process sooner rather than later.

Tip #4
Be prepared for the subordination to take some time (from weeks to months). While the SBA has been good about granting subordinations, the timing is unpredictable.

Tip #5
We are very experienced with EIDL loan subordinations. If you have an EIDL (or a client with an EIDL) and need additional capital or a new lender, contact Mark Hafner at mhafner@celticcapital.com.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.