SBA Loans: Easier Said Than Done | Add Comment

  • Default Risks 7/12/2008
    The SBA lender will likely add your residence as security for the loan. And if the business goes bad and you can not repay, they will foreclose on the house. Even if they have collected on the SBA guarantee. I know of a case where the loan was for an amount equal to 3 times the equity in the home. Yet they added a lien on the house for the full amount of the loan. By the time the loan went bad, the house had appreciated to an amount greater than the loan. The SBA foreclosed and the borrower lost ALL accumulated equity in the house!

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