Many truckers who get SBA loans DO need to collateralize their trucks. If that is part of the loan...

The borrower needs to notify the bank if he plans to sell a truck. Proceeds of the sale are required to pay down the SBA loan.

The borrower cannot use the truck as a trade unless the new vehicle will be owned free and clear and we can take the title (collateral swap).

Lender does not take second position liens on vehicles, therefore he can not trade the truck on a new vehicle being financed.

He will be signing the title over to lender - will listed as the lienholder.