[mondial99]

Question: Can EIDL loan approvals be used as collateral for a very short-term working capital loan? EIDL approval-to-funds-transfer is a 7-10 day process (I am told by SBA). If yes, can anyone fund today on a simple CG and 1st lien on EIDL?

TIA,

David McCarthy
McCarthy Merchant Capital
david@mccarthymerchantcapital.com
717-622-2784 - (717) MCCARTH
www.mccarthymerchantcapital.com

[mistamca]

Question: Can EIDL loan approvals be used as collateral for a very short-term working capital loan? EIDL approval-to-funds-transfer is a 7-10 day process (I am told by SBA). If yes, can anyone fund today on a simple CG and 1st lien on EIDL?

TIA,

David McCarthy
McCarthy Merchant Capital
david@mccarthymerchantcapital.com
717-622-2784 - (717) MCCARTH
www.mccarthymerchantcapital.com

The process is by no means that quick. If by approval, you mean that legal has signed off, then yes. If the bank kicks the funds back due to fraud (not uncommon), then it might be another 2-6 weeks.

If they have not been assigned an underwriter, then they are easily 4-8 weeks out. Also don't trust SBA customer service. You can call 3 times a day and get 3 different answers. If 4506-T has not been processed, then it will easily be 8-12 weeks unless they use their senator to launch an inquiry against the SBA on their behalf

[Olderguy]

EIDL approvals don't mean anything...I seen approvals of several million and not get funded.

[SBF]

If approved and loan docs signed.. it's very likely it will fund in 3-5 business days. However, I have assisted dozens of clients with this.. and did actually get one that funded into the wrong account (even though we have proof that the bank info was changed and acknowledged long before approval).. It's been 13 months since this happened.. still no funds.. very sad for the borrower.

[mistamca]

If approved and loan docs signed.. it's very likely it will fund in 3-5 business days. However, I have assisted dozens of clients with this.. and did actually get one that funded into the wrong account (even though we have proof that the bank info was changed and acknowledged long before approval).. It's been 13 months since this happened.. still no funds.. very sad for the borrower.

Did you have a senator begin an inquiry for them? This will normally fix the issue in about 4 weeks