Does anyone have experience with Parri Passu? I have never heard of this until this week! Situation: SBA wants us to Parri Passu a loan so it mirrors the other SBA loan we have with this customer. & Of course they are in Flood Zones (because why not) In my mind we still have to do a flood determination to be sure we are covered since the property is now under 2 loans, right? I'm getting push back saying that Parri Passu is an endorsement only. If if this were the case, we still have to be sure its covered for both loans. Thoughts?

Well, the way I understand it if that you make a larger loan to the borrower and the SBA will only guarantee the portion of the loan up to the SBA limit. That way you both remain in first position. But this is all going to be situation dependent. Regardless, if you make them a loan, then a FHD and flood insurance is required, if applicable.

Thank you! This is the loan that wont go away-- it keeps coming up. It has several buildings on it that are randomly connected. The flood zone is in a tree line on the backside of the building with a small shed lean-to built next to it that does extend into the flood zone. Plus its SBA. And now parri passu.