personal guarantees are no joke. It means that if your business can't repay your SBA EIDL loan, then you personally are expected to pay out of your own income and assets.

Now, just because you personally guaranteed your EIDL loan, it doesn't automatically mean that the SBA is going to pull up to your house with the van and take all your stuff.

Even though they could sue you, in my experience the SBA does not sue individuals who default on disaster loans.

instead, it's more likely that your file will be referred to the US Treasury where they will take collection action against you. it's not quite as bad as them having a judgment against you but it's still can be pretty painful.

The Treasury's three favorite things to do or wage garnishment, tax return levy, and garnishment of social security.

It is possible to settle with the treasury, but it's typically very difficult and costly.

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