[Olderguy]

Generally it's not optional if there is sufficient equity in a guarantor's residence (as an example) - it's an SBA requirement, bank or non-bank lender. Whether your clients haven't had sufficient equity in their residences to be required to pledge it, whether the bank requires additional collateral to approve, whether your clients have excess collateral coverage already, or whether you're working on deals under the threshold of that requirement (sub $350k, if I recall correctly) - those are all possibilities as to why you haven't seen that.

Banks are welcome to layer on their own requirements on top, but to say as a blanket that only non-bank SBA lenders take personal property as collateral is flatly incorrect, with all respect. Its fairly common.

You could be right as I get all these declined bank files that fail due to that.