[BR-Nightmare]

I would like to know what your position is funding a Merchant with a UCC from the SBA. Do you consider the amount of their SBA Loan taken when considering your offer?

Has anyone noticed Merchants dissolving the entity where the UCC is filed and just opening a new one?

[Olderguy]

Not sure I understand your question...I haven't seen a UCC for SBA considered to be a first position in a MCA submission. On the other hand I am paying off UCC SBA for hard money loans that are collateralized by property by SBA.

[BR-Nightmare]

I never claimed the SBA was a position.

My question is does an offer amount change if the SBA has a UCC filed?

Example: SBA files for their loan that was given for 100k, a funder gives 70k. Lets just say the Merchant goes ghost in general. I would assume SBA's UCC will knock a funders attempt to collect if the UCC's collateral is identical in both filings.

I've come across a handful of Merchants opening a new entity for their business and move their money there, attempt for funding with a funder to dodge the SBA. Would anyone agree that's a red flag?

[Olderguy]

I never claimed the SBA was a position.

My question is does an offer amount change if the SBA has a UCC filed?

Example: SBA files for their loan that was given for 100k, a funder gives 70k. Lets just say the Merchant goes ghost in general. I would assume SBA's UCC will knock a funders attempt to collect if the UCC's collateral is identical in both filings.

I've come across a handful of Merchants opening a new entity for their business and move their money there, attempt for funding with a funder to dodge the SBA. Would anyone agree that's a red flag?

OK....yeah, I'd say a red flag.