EIDL Collateral Confusion

[John Cantu]

Hey everyone. So I got approved for an EIDL in excess of 25k. I know that over this amount requires them to take collateral, the details of which are very obscure. My concern is if I sell any property as a result of my normal operations, am I going to need to let the SBA know every time? Would I be able to get around this if each property is in a different LLC? Thanks.

[Michael Plaks]

Originally posted by @John Cantu:

I’m wondering if collateral would apply to a separate business that I own with a partner. We did and flip, I shouldn’t have an issue there right? I don’t want to be in violation of anything.

I assume this is what you mean: a business that you own personally received an EIDL loan. You're also a partner in another business, and that other business did a flip. You're wondering if the flip of which you own 50% thru the partnership is required to be declared as collateral against your own EIDL loan. The answer is no, to the best of my knowledge. Sadly, literally nobody can claim knowing anything for sure when it comes to these SBA loans.

As to your desire to never violate anything - forget it, it's impossible when in business.