SBA Loan - Can SBA take lien on the next house we buy?

searcher profile

February 20, 2025

by a searcher in Nashville, TN, USA

Will the SBA/the bank have a right to take a lien against any future houses we buy while we still have an SBA loan balance? They have a lien on our current primary residence but anticipate moving in 1-2 years and renting out our current residence (the one with the Lien currently). If the SBA can take any position on that, then we might make different financial decision in the short term. We are in the early stages of exploring this option so wanted to get community input in addition to asking our lender directly

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
The above answers are correct. Once your loan is closed the lender cannot pursue additional collateral from you. The only way they would take a lien on your next home would be if they have a lien on your existing home, you then sold that home and used that money to buy another home. In that case they would in essence transfer the lien on your existing home to your new home. But outside of that, no, they cannot take future collateral.

Please keep in mind however that you have signed a personal guarantee on your SBA loan. If you were to ever default on the loan and they were to pursue you under that guarantee, any assets you own at that point would be exposed. That can include assets acquired post-closing.

If you would like to discuss further you can reach me here or directly at redacted
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Reply by a lender
from University of Southern California in Los Angeles, CA, USA
No, the SBA lender cannot take a lien on a future home. Are you in the market for a SBA lender? Would love to help you with your SBA loan. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!
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