This is a serious matter and you need to retain a LOCAL attorney immediately to obtain a writ to seek repossession of your materials (that he likely is using on the other project). I am surprised that he was able to get all (or a large portion) of your construction loan moneys without obtaining inspections from the Bank with each draw request.
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You need a local construction/real estate attorney now. Check on Avvo for someone close to you that has that experience in their resume. Also helpful is someone who has consumer law experience. The longer you wait, the more difficult it is going to be to get your materials and your money back.
The fact that they got money from your SBA loan is odd. They may also have signed fraudulent papers with your bank.
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