Typically an engagement or committment letter for a SBA loan requires collateralization of all business assets. (non bank lenders can also use some personal assets too).

This presents a problem for business owners who have vehicles used in the operations.....and truckers too....anything that is free and clear - lender needs to hold title.

The obvious issue is that the loan is for 10 years and you typically can't hold a vehicle that long.

When this happens here's what to do:

Have them go back to the credit committee and ask them to remove just the vehicles and/or trucks.

In just about every instance I have had them be able to do this AS LONG AS THERE ARE OTHER ASSETS TO STILL GUARANTEE THE LOAN.

None of the lenders that I've dealt with have offered that and it's only by experience that I have been able to do this for several clients with push back from me.

Just FYI.

Reach out if you have any other SBA questions.