What Happens If You Default on an SBA Loan
How an SBA loan default plays out: lender collection, your personal guarantee, Treasury collection, and what to do before you miss a payment.
Nov 13, 2026
Chris Scarfo
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Full disclosure below.
Co-founder, Lending Gurus
Chris Scarfo is the co-founder of Lending Gurus, an AI guidance platform that helps small business owners understand their financing options before they ever talk to a lender. He started it in 2024 as a small business lending brokerage.
Before Lending Gurus, Chris spent ten years in business banking at Wells Fargo, BlueVine, Bank of America and U.S. Bank. At BlueVine he funded an average of about $1M a month in lines of credit and term loans for small business owners. At Bank of America he brought in about $10M a year in new deposits and $5M a year in new lending, and at his peak ranked first in the San Francisco Bay Area and in the top 10 nationally. At U.S. Bank he led a business banking portfolio across several products as a senior relationship manager.
He lives in the San Francisco Bay Area and is a father of three.
Articles by Chris
Ramp Credit Card Review
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Credit Union Business Line of Credit: How It Works and Who Fits
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SBA Working Capital Loan: 7(a), Express and CAPLines
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The Amber Grant for Women: Eligibility, Deadlines and Tips
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Grants for Women Owned Businesses: What’s Real and How to Apply
Grants for women owned businesses: private grants, research and export grants, WOSB federal contracts, free help at Women's Business Centers, and scams.
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Small Business Grants: Where to Find Real Ones in 2026
Where real small business grants come from: SBA programs, Grants.gov, SBIR, state and private grants, who qualifies, how to apply and how to avoid scams.
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SBA 504 Loans: Financing for Buildings and Big Equipment
SBA 504 loans explained: up to $5.5 million for buildings, land and long life equipment, the 50/40/10 structure, fees, terms and how to apply.
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SBA Microloans: How to Borrow Up to $50,000
SBA microloans explained: up to $50,000 through nonprofit intermediaries, allowed uses, eligibility, typical rates and terms, and how to apply.
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