SBA Loans, Personal Guarantees & Excluded Assets

searcher profile

September 17, 2020

by a searcher from Clemson University in Charlotte, NC, USA

Can someone please share whether any classes of personal assets are generally excluded from Personal Guarantees signed with a SBA 7a loan? I am wondering specifically about 401K / retirement accounts and primary residences. Does this vary by state?

Thanks

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Personal GTY for SBA will be generally secured by real estate, if you have it, primary or otherwise. (Unless you're in a homestead state and then personal residence excluded.) Retirement funds/401k are excluded from a lien position. Some lenders can potentially take a secured interest in stock/bond portfolios.. Live Oak does not. So be sure to ask your lender what's specifically going to secure the PG.
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Reply by an intermediary
from Indiana University at Bloomington in Carmel, IN, USA
If you Have less than 20% equity in a residence , generally they will not use as collateral.
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