You will need to take out the contract you signed with the SBA & look at it. In many instances, the SBA will take both your personal assets as well as business assets as collateral for the loan, which gives them the right to seize these items if you do not make payments.
Hope this perspective helps!
Taking out an SBA loan does not mean you will lose everything. There are exempt assets and you have a certain amount of income that is exempt, but the government is typically the guaranteeing agency and will payoff the bank and they try to get you to pay. My web site has a good summary of your options for a typical private debt case, but SBA loans are a private debt on steriods, as they have even more remedies at their disposal. If you do deal with a bankruptcy attorney on this, be sure that they have specific experience with SBA loans.
Robert Stempler (Please see DISCLAIMER below)
NOTICE: The above statements are provided for general information purposes only and are not intended as legal advice or advice of any sort for a specific case or legal matter. If you do not have a signed attorney-client fee agreement with the Consumer Law Office of Robert Stempler, APLC ("the Firm"), then until such written fee agreement is provided and signed by both a prospective client and attorney for a particular case, neither Mr. Stempler nor the Firm will represent you nor will they be your attorney in any matter and you remain responsible for retaining your own attorney and for compliance with any and all deadlines and for any statutes of limitations that may pertain to potential claims. Comments made on a public forum, such as Avvo.com, to not have any confidentiality because others may read them. If you desire a private consultation with Mr. Stempler that is confidential, please go to www.StopCollectionLawsuits.com and submit a free eCase Review.