# Can a lender take your personal assets after an SBA default?

**Short answer:** Yes, if you signed a personal guarantee. SBA Form 148 lets the lender demand full payment from you without first pursuing the business, other guarantors or collateral. Property you pledged can also be sold. Sources: SBA Form 148, para. 1; 13 CFR 120.545.

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Last checked: 2026-11-09

Yes, if you gave a guarantee or pledged the property. SBA Form 148 says the lender need not seek payment from any other source before demanding payment from you (para. 1).

## What the guarantee reaches

- The full amount owing on the note, until it is paid in full (para. 1).
- Enforcement costs, including attorney's fees (para. 9.A).
- All guarantors, jointly and severally (para. 9.D).

A limited guarantee on SBA Form 148L limits exposure under the option chosen.

## Collateral you pledged

SBA or the lender may sell real and personal property pledged to secure a loan in default. The security instrument controls how (13 CFR 120.545(c)). Whether a lien was required on your home depends on the loan and your equity (SOP 50 10 8.1, Appendix 19).

## Non-owner spouses

A non-owner spouse's guaranty secured by jointly held collateral is limited to that spouse's interest in the collateral (Sec. A, Ch. 5, Para. A.2.b, p. 93).

## Farm borrowers

13 CFR 120.550 lets SBA lease a farm residence and limited adjoining property back to a qualifying farmer-borrower. Eligibility rules are in 13 CFR 120.551.

## What is not covered here

Exemptions and the order of collection depend on state law and your documents. Form 148 leaves space for state-specific provisions (para. 10). Ask an attorney before relying on any protection.

## Sources

- [SBA Form 148, Unconditional Guarantee](https://legacy.sba.gov/document/sba-form-148-unconditional-guarantee)
- [SBA Form 148L, Unconditional Limited Guarantee](https://legacy.sba.gov/document/sba-form-148-l-limited-guarantee)
- [13 CFR § 120.545](https://www.ecfr.gov/current/title-13/section-120.545)
- [13 CFR § 120.550](https://www.ecfr.gov/current/title-13/section-120.550)
- [13 CFR § 120.551](https://www.ecfr.gov/current/title-13/section-120.551)
- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. A.2.b (p. 93)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Appendix 19, Para. A (p. 404)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)